| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 65.87 | -36 |
| Intrinsic value (DCF) | 10277.50 | 9857 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Mirum Pharmaceuticals, Inc. (NASDAQ: MIRM) is a biopharmaceutical company dedicated to developing and commercializing innovative therapies for rare and orphan diseases, particularly those affecting the liver. Headquartered in Foster City, California, Mirum focuses on conditions such as progressive familial intrahepatic cholestasis (PFIC), Alagille syndrome, and biliary atresia, with its lead product, LIVMARLI, an oral drug showing promise in clinical trials. The company is also advancing Volixibat for intrahepatic cholestasis of pregnancy and primary sclerosing cholangitis. Operating in the high-growth biotechnology sector, Mirum leverages its expertise in hepatology to address unmet medical needs, positioning itself as a key player in rare disease therapeutics. With a market cap of approximately $2.18 billion, Mirum combines clinical innovation with strategic commercialization efforts to drive long-term value for patients and investors.
Mirum Pharmaceuticals presents a compelling investment opportunity in the rare disease therapeutics space, supported by its promising pipeline and commercialization efforts for LIVMARLI. The company's focus on orphan diseases reduces competition and enhances pricing power, while its $222.5 million cash position provides a runway for continued R&D. However, risks include its current net loss (-$87.9 million in FY 2023) and reliance on successful clinical trials and regulatory approvals. The stock's beta of 0.957 suggests moderate volatility relative to the market, making it suitable for growth-oriented investors comfortable with biotech sector risks. Revenue growth (2023 revenue: $336.9 million) indicates commercial traction, but profitability remains a key milestone to monitor.
Mirum Pharmaceuticals competes in the niche but growing market for rare liver diseases, where its lead asset, LIVMARLI, holds first-mover potential in PFIC and Alagille syndrome. The company’s competitive advantage lies in its targeted approach to hepatology, reducing direct competition compared to broader biotech firms. Its clinical pipeline, including Volixibat, diversifies its growth potential beyond LIVMARLI. However, competition exists from larger biopharma companies with greater resources for R&D and commercialization, such as Albireo Pharma (acquired by Ipsen) and Travere Therapeutics. Mirum’s relatively small size may limit its ability to scale globally without partnerships, but its focus on rare diseases allows for specialized commercialization and pricing strategies. The company’s debt-to-equity position ($317.8 million in total debt) is manageable given its revenue trajectory, but investor sentiment will hinge on pipeline execution and regulatory milestones.