Key Stats for Disc Medicine Stock
- Recent Move: -22%
- Current Price: ~$56
- Street Consensus Target: ~$120
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What Happened?
Disc Medicine (IRON) shares collapsed 21.9% this week, closing at $56.46, after the company suffered a catastrophic regulatory setback.
The FDA issued a “Complete Response Letter” (CRL), essentially a rejection, for its lead drug candidate, bitopertin, which is designed to treat a rare skin disease called Erythropoietic Protoporphyria (EPP).
According to reports, the FDA refused to approve the drug because the clinical trials failed to prove a tangible benefit to patients, despite improving their blood test results (specifically reducing a toxin called protoporphyrin IX).
This disconnect between “biomarkers” and “how patients actually feel” is a classic biotech trap.
The news came as a shock because management had been incredibly bullish.
In a presentation just weeks ago, CEO John Quisel stated: “We’re on the cusp of approval of our lead program… anticipated FDA action date coming in just a matter of weeks now.”
Investors who bought into that confidence were blindsided by the regulator’s hard “No,” which will force the company to run a new, expensive trial, delaying potential revenue by years.
Despite the crash, some analysts are defending the stock. Wedbush reiterated its “Outperform” rating, arguing that the market reaction is overdone given the company’s other assets.
See analysts’ growth forecasts and price targets for Disc Medicine stock (It’s free!) >>>
Is Disc Medicine Undervalued Today?
While the market is panicking, Wall Street analysts are holding the line. The Street Consensus Target currently stands at $120, implying 102% upside from current levels.
The bull case relies on the company’s massive cash pile, which protects it from immediate insolvency. In the transcript, CEO John Quisel noted: “We have about $791 million on the books… provides us runway into 2029.”
This $791 million cushion means Disc Medicine can afford to run the new trials the FDA is demanding without diluting shareholders immediately.
Furthermore, the rejection of bitopertin does not kill the rest of the pipeline.
The CEO highlighted DISC-0974 as a potential “$4 billion plus” opportunity in myelofibrosis anemia.
Analysts believe the value of this second asset, combined with the cash, is worth far more than the current market cap of ~$2.1 billion.
Read the full Disc Medicine Transcript on TIKR to see the CEO’s original promise >>>
Valuation Deep Dive
We look to the Street Consensus, which suggests the sell-off is a massive overreaction.
- Street Target Price: ~$120
- Current Price: ~$56
- Implied Upside: 102%
The “Cash Floor” Theory: Trading at ~$56, the stock is being priced as if its entire pipeline is worthless. However, with nearly $21 per share in cash, the market is assigning very little value to the actual drug platform.
Pipeline Optionality: While bitopertin is delayed until likely mid-2027, the company has other shots on goal. If positive data emerges from the DISC-0974 program later this year, it could catalyze a recovery independent of the FDA rejection, bridging the gap back to the $100+ level.
Conclusion: A high-stakes discount. With a 22% drop and a broken timeline, Disc Medicine is a battleground stock. But for investors who trust the analyst consensus of $120, the current price offers a rare chance to buy a well-funded biotech at half price.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
