JMP maintains $10 target on Savara stock post-BLA submission

On Wednesday, JMP Securities reiterated its Market Outperform rating on Savara Inc. (NASDAQ:SVRA) with a steadfast price target of $10.00. The stock, currently trading at $3.22, has shown strong momentum with a 9.9% gain over the past week. According to InvestingPro data, analyst price targets range from $3 to $16, suggesting significant upside potential. Savara has recently completed its rolling Biologics License Application (BLA) for Molbreevi, a treatment for autoimmune pulmonary alveolar proteinosis (aPAP), and is on track to submit its Marketing Authorization Application (MAA) in Europe by the end of 2025.

The firm is optimistic about the potential for the U.S. Food and Drug Administration (FDA) to accept the BLA by May. Analysts at JMP believe that Molbreevi's Breakthrough Therapy designation, compelling Phase 3 trial results, and the significant need for new aPAP treatments could lead to a Priority Review. With a FAIR financial health score and strong liquidity position, InvestingPro data shows Savara holds more cash than debt, positioning it well for potential commercialization. This expedited process would reflect the FDA's recognition of the urgency to address this unmet medical need.

JMP analysts have a high level of confidence in the approval of Molbreevi, assigning a 90% probability of success (POS). The commercial prospects for Molbreevi are also seen as promising, with Savara identifying approximately 3,600 diagnosed patients in the United States alone. This figure surpasses previous estimates found in medical literature and is based on an analysis of ICD9/10 diagnosis claims.

The positive outlook for Molbreevi is buoyed by the drug's potential to meet the high unmet need within the aPAP community. If the FDA grants Priority Review, it would significantly shorten the review timeline, potentially bringing Molbreevi to market sooner than anticipated. This development would be a critical milestone for Savara as it seeks to offer a new therapeutic option for patients with this rare lung disease. With a market capitalization of $678 million and its next earnings report due on May 8, investors can access comprehensive analysis and additional insights through InvestingPro 's detailed research reports, which cover over 1,400 US stocks.

In other recent news, Savara Inc. has completed its Biologics License Application (BLA) submission to the U.S. Food and Drug Administration (FDA) for its investigational drug MOLBREEVI, targeting autoimmune pulmonary alveolar proteinosis (aPAP). The company has requested a Priority Review, which could expedite the FDA's review process to six months, with a potential commercial launch anticipated in early 2026. Savara has also ended its sales agreement with Evercore Group L.L.C., which allowed the sale of up to $100 million in shares, though no shares have been sold since December 31, 2024. Analyst Andrew S. Fein from H.C. Wainwright has maintained a Buy rating on Savara with a $6.00 price target, citing the recent BLA submission as a positive development. Meanwhile, JMP Securities has reaffirmed a Market Outperform rating and a $9.00 price target, expressing confidence in MOLBREEVI's approval and commercial potential. Savara plans to present data from a Phase 3 clinical trial for molgramostim, another investigational treatment for aPAP, at upcoming medical congresses in Germany and Japan. The presentations will highlight the drug's effectiveness in improving pulmonary gas exchange and quality of life for patients. These developments reflect Savara's ongoing efforts to address unmet needs in rare respiratory diseases.

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