Why the FDA’s priority review for atacicept matters for Vera Therapeutics

Vera Therapeutics (VERA) shares are reacting to news that the U.S. FDA accepted the Biologics License Application for atacicept in IgA nephropathy for Priority Review, with a PDUFA target action date of July 7, 2026.

The FDA’s Priority Review comes on the back of strong clinical data for atacicept and arrives after a sharp 59.45% 90 day share price return, while the 3 year total shareholder return is roughly 7x. This points to momentum that has been building rather than fading.

If this kind of regulatory progress has your attention, it could be a good moment to look across other healthcare stocks that might be reshaping future treatment options too.

With Vera shares up roughly 59% over 90 days and trading at about a 46% discount to the average analyst price target, the key question is whether there is still a buying opportunity here or if the market is already pricing in future growth.

Price-to-Book of 8.7x: Is it justified?

At a last close of $48.68, Vera Therapeutics is being valued at a P/B of 8.7x, which the data flags as good value versus peers but expensive versus the broader biotech industry.

P/B compares the market value of the company to its net assets on the balance sheet, which can be a useful shorthand for asset heavy or early stage biotech names that do not yet report profits.

According to the statements, Vera screens as good value against its peer set on this metric, with a P/B of 8.7x compared to a peer average of 12.1x. However, it also screens as expensive against the wider US biotechs industry where the average P/B is 2.7x. That mix suggests investors are willing to pay more than the sector as a whole, but not as much as for some closer comparables.

Result: Price-to-book of 8.7x (ABOUT RIGHT)

Beyond multiples, Simply Wall St's DCF model also provides a reference point, with a fair value estimate of $242.73 compared to the $48.68 share price.

The DCF framework projects Vera's potential future cash flows and discounts them back to today, which can be helpful for a business that is currently loss making but has forecast revenue growth and an expected path toward profitability.

In this case, the model output implies a very wide gap between the current market price and the DCF value. This can be especially relevant for a clinical stage biotech whose future cash flows depend on successful drug development and commercialisation.

Result: DCF Fair value of $242.73 (UNDERVALUED)

However, the story still carries risk, including Vera’s current net loss of $251.943 million and the chance that future trial or FDA outcomes disappoint expectations.

Another View: What if the market is closer to the mark?

The SWS DCF model points to a fair value of US$242.73 per share, which is very far from the current US$48.68 price. That kind of gap can reflect either a meaningful opportunity or assumptions that are more optimistic than the market is prepared to accept right now.

For a clinical stage biotech with no revenue yet and a net loss of US$251.943m, it is worth asking how comfortable you are with the forecasts and discount rate inside any cash flow model, including ours. If those inputs prove too hopeful, today’s discount could simply be the market pricing in that uncertainty.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Vera Therapeutics for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 885 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Vera Therapeutics Narrative

If you see the numbers differently or simply prefer to test your own assumptions, you can build a personal view in a few minutes with Do it your way.

A great starting point for your Vera Therapeutics research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Vera has sparked your curiosity, do not stop here. Your next strong idea might be sitting in plain sight if you are willing to go a little further.

• Spot potential value plays early by scanning these 885 undervalued stocks based on cash flows that line up with your own expectations on cash flows and pricing.
• Explore technology-focused opportunities by reviewing these 26 AI penny stocks that connect artificial intelligence with real business models and measurable fundamentals.
• Add an income angle by checking out these 12 dividend stocks with yields > 3% that can introduce a different return profile to a growth heavy portfolio.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.