Following the news that Ionis Pharmaceuticals Inc (NASDAQ: IONS) has secured FDA approval in a major way for its pipeline drug Spinraza in the indication of treating spinal muscular atrophy (SMA), Leerink Swann analyst Paul Matteis maintains a Hold rating, but raises the price target to $47 from $40.

The approval clears the pathway for Spinraza, developed collaboratively with Biogen Inc (NASDAQ: BIIB), to treat an expansive range of patients, from children to adult patients with a later onset. Ionis now has reason to celebrate, as Spinraza is the first and only treatment approved in the U.S. for SMA. Although Matteis remains sidelined, he is increasingly optimistic on back of the approval.

Ionis will receive royalties from the drug, which have been licensed to Biogen. Additionally, Biogen plans to have Spinraza available for shipment within one week.

Matteis, healthcare-focused analyst, has a 55% success rate, a four-star ranking, and an average return per recommendation of 8.9% according to financial accountability engine TipRanks.

Ionis is currently trading at $55.42, notably higher than the 12-month average consensus price target on TipRanks of $43, and also notably above Matteis’ revised target of $47. Shares are trading up close to 4% today.

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