PTC Therapeutics, Inc. (NASDAQ:PTCT) closed lower on Thursday following the company’s decision to withdraw its New Drug Application for Translarna after receiving feedback from the U.S. Food and Drug Administration (FDA).
PTC Therapeutics announced that it has withdrawn the New Drug Application (NDA) resubmission for Translarna (ataluren) intended for nonsense mutation Duchenne muscular dystrophy (DMD). The FDA indicated that the data in the NDA submission were unlikely to meet the agency’s threshold for substantial evidence of effectiveness.
The withdrawal of the NDA is a significant setback for PTC, as the company has invested over two decades in developing this therapy for boys and young men affected by DMD.
In March 2025, the European Commission (EC) adopted the opinion of the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) not to renew the authorization of Translarna (ataluren) for nonsense nmDMD.
Nonsense mutation is one of the most common types of DMD point mutations. Nonsense mutations cause the protein-building instructions to be read “stop” when there should still be more protein-building blocks to add on. DMD nonsense mutations result in little or no dystrophin (essential for muscles) protein.
Technical Analysis
The broader market experienced a mixed performance on the previous trading day, with the Healthcare sector remaining flat, gaining 0.00%. PTC’s stock is underperforming relative to the sector, indicating company-specific factors may be influencing its current trajectory.
The stock is currently trading 10.0% below its 20-day simple moving average (SMA) and 11.5% below its 100-day SMA, demonstrating a bearish short-term trend. Shares have increased 42.34% over the past 12 months and are currently positioned closer to their 52-week highs than lows.
The RSI is at 34.27, which is considered neutral territory, indicating that the stock is neither overbought nor oversold. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $75.00
- Key Support: $60.00
Sector Performance
PTC Therapeutics is currently underperforming its sector, with a decline of 5.16% compared to the Healthcare sector’s flat performance. The Healthcare sector is ranked 2 out of 11 sectors, indicating it is one of the top-performing sectors, although PTC’s stock is lagging behind.
Over the past 30 days, the Healthcare sector has seen a slight decline of 1.18%, while it has gained 2.83% over the past 90 days. This context highlights that while the sector has shown some resilience, PTC’s recent developments have negatively impacted its stock performance.
Earnings & Analyst Outlook
The countdown is on: PTC Therapeutics, Inc. is set to report earnings on February 19, 2026.
- EPS Estimate: Loss of 34 cents (Up from Loss of 85 cents YoY)
- Revenue Estimate: $290.76 million (Up from $213.17 million YoY)
- Valuation: P/E of 8.2x (Indicates value opportunity)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $76.56. Recent analyst moves include:
- Barclays: Upgraded to Overweight (Raises Target to $119)
- RBC Capital: Downgraded to Sector Perform (Raises Target to $91)
- Barclays: Equal-Weight (Raises Target to $68)
Benzinga Edge scorecard for PTC Therapeutics, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 36.86) — Trading at a steep premium relative to peers.
- Momentum: Bullish (Score: 88.19) — Stock is outperforming the broader market.
The Verdict: PTC Therapeutics’ Benzinga Edge signal reveals a mixed outlook. While the strong momentum score indicates positive short-term performance, the weak value score suggests that the stock may be overvalued relative to its peers.
Top ETF Exposure
- SPDR Series Trust SPDR S&P Biotech ETF (NYSE:XBI): 1.29% Weight
- First Trust Mid Cap Growth AlphaDEX Fund (NASDAQ:FNY): 0.90% Weight
- Harbor Human Capital Factor US Small Cap ETF (NYSE:HAPS): 1.89% Weight
PTCT Price Action: PTC Therapeutics shares closed 5.16% lower during after-hours trading on Thursday, according to Benzinga Pro data.
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