Ultragenyx Faces Class Action Lawsuit Impact
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy RARE?
Source: PRnewswire
- Class Action Filed: Pomerantz LLP has announced a class action lawsuit against Ultragenyx Pharmaceutical, alleging securities fraud and unlawful business practices by the company and certain officers, with investors advised to apply as Lead Plaintiff by April 6, 2026, highlighting significant legal risks for the firm.
- Stock Price Volatility: On July 10, 2025, Ultragenyx's stock plummeted 25.11%, dropping $10.41 to close at $31.04, following disappointing news regarding its Orbit study, indicating strong market reactions to clinical trial outcomes.
- Clinical Trial Failures: On December 29, 2025, Ultragenyx announced that its Phase III Orbit and Cosmic studies failed to achieve statistical significance on primary endpoints, causing a further 42.32% drop in stock price, down $14.47 to $34.19, exacerbating investor confidence issues.
- Legal Expertise: Pomerantz LLP, a leading firm in securities class litigation with over 85 years of experience, is recognized for advocating for victims of securities fraud and corporate misconduct, underscoring the firm's influence and expertise in legal matters.
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Analyst Views on RARE
Wall Street analysts forecast RARE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RARE is 61.65 USD with a low forecast of 35.00 USD and a high forecast of 120.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
17 Buy
1 Hold
0 Sell
Strong Buy
Current: 23.880
Low
35.00
Averages
61.65
High
120.00
Current: 23.880
Low
35.00
Averages
61.65
High
120.00
About RARE
Ultragenyx Pharmaceutical Inc. is a biopharmaceutical company. The Company is focused on the identification, acquisition, development, and commercialization of novel products for the treatment of serious rare and ultrarare genetic diseases. Its therapies and clinical-stage pipeline consist of four product categories: biologics, small molecules, AAV gene therapy, and nucleic acid product candidates. Its four approved product candidates include Crysvita (burosumab) for the treatment of X-linked hypophosphatemia (XLH), and tumor-induced osteomalacia (TIO), Mepsevii (vestronidase alfa) for the treatment of mucopolysaccharidosis VII (MPSVII) or Sly Syndrome, Dojolvi (triheptanoin) for the treatment of long-chain fatty acid oxidation disorders (LC-FAOD), and Evkeeza (evinacumab) for the treatment of homozygous familial hypercholesterolemia (HoFH). Its clinical product candidates include DTX401, DTX301, UX701, UX143, UX111, and GTX-102. UX143 for the treatment of Osteogenesis Imperfecta.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Earnings Announcement: Ultragenyx Pharmaceutical is set to release its Q4 earnings on February 12 after market close, with a consensus EPS estimate of -$1.17, reflecting a 15.8% year-over-year improvement, indicating potential profitability enhancement.
- Revenue Growth Expectations: The anticipated revenue for Q4 is $201.86 million, representing a 22.4% year-over-year increase, showcasing strong market demand and sales performance that could lay the groundwork for future growth.
- Estimate Revision Trends: Over the past three months, EPS estimates have seen four upward revisions and two downward adjustments, while revenue estimates have experienced seven upward revisions with no downward changes, suggesting increasing analyst confidence in Ultragenyx's future performance.
- Long-term Revenue Outlook: Ultragenyx projects FY25 revenue between $672 million and $674 million, providing investors with a positive outlook on the company's growth potential, particularly in the ongoing development of therapies for neurological conditions.
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- Class Action Filed: Pomerantz LLP has announced a class action lawsuit against Ultragenyx Pharmaceutical, alleging securities fraud and unlawful business practices by the company and certain officers, with investors advised to apply as Lead Plaintiff by April 6, 2026, highlighting significant legal risks for the firm.
- Stock Price Volatility: On July 10, 2025, Ultragenyx's stock plummeted 25.11%, dropping $10.41 to close at $31.04, following disappointing news regarding its Orbit study, indicating strong market reactions to clinical trial outcomes.
- Clinical Trial Failures: On December 29, 2025, Ultragenyx announced that its Phase III Orbit and Cosmic studies failed to achieve statistical significance on primary endpoints, causing a further 42.32% drop in stock price, down $14.47 to $34.19, exacerbating investor confidence issues.
- Legal Expertise: Pomerantz LLP, a leading firm in securities class litigation with over 85 years of experience, is recognized for advocating for victims of securities fraud and corporate misconduct, underscoring the firm's influence and expertise in legal matters.
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- Financial Performance: Ultragenyx reported a net loss of $129 million in Q4 2025, translating to a loss of $1.29 per share, which is an improvement from a loss of $133 million or $1.39 per share in the previous year, indicating efforts to control losses.
- Revenue Growth: The company achieved revenues of $207 million in Q4, marking a 25% increase from $165 million in the same period of 2024, reflecting sustained market demand in the ultra-rare genetic disease sector.
- Future Outlook: Ultragenyx expects total revenues for 2026 to range between $730 million and $760 million, representing an 8% to 13% increase compared to 2025, showcasing confidence in future product launches and market potential.
- Strategic Restructuring: The company has initiated a strategic restructuring plan that includes a 10% workforce reduction, impacting approximately 130 employees, aimed at reducing expenses and focusing resources on its largest value drivers to achieve profitability by 2027.
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- Earnings Performance: Ultragenyx reported a Q4 GAAP EPS of -$1.29, missing expectations by $0.16, indicating challenges in profitability that may affect investor confidence.
- Revenue Growth: The company achieved Q4 revenue of $207 million, a 25.5% year-over-year increase, surpassing expectations by $5.14 million, demonstrating sustained market demand for its products and enhancing future sales potential.
- 2026 Revenue Guidance: Ultragenyx projects total revenues for 2026 to be between $730 million and $760 million, reflecting an 8% to 13% increase compared to 2025, showcasing confidence in future product launches despite excluding potential revenue from new products.
- Product Revenue Expectations: Crysvita is expected to generate revenue between $500 million and $520 million, driven by growing global demand but tempered by expected ordering patterns in Brazil, while Dojolvi's revenue is projected between $100 million and $110 million, highlighting the diversity and market adaptability of its product lines.
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- Lawsuit Background: Kessler Topaz Meltzer & Check, LLP has filed a securities fraud class action against Ultragenyx Pharmaceutical on behalf of investors who purchased shares between August 3, 2023, and December 26, 2025, highlighting serious concerns regarding the company's transparency.
- False Statements Allegations: The lawsuit alleges that Ultragenyx misled investors by downplaying the risks associated with its drug setrusumab, particularly regarding the Phase III Orbit study's potential failure to achieve significant reductions in fracture rates, which has negatively impacted investor confidence.
- Investor Actions: Affected investors must apply for lead plaintiff status by April 6, 2026, to represent other investors in the lawsuit, indicating a strong emphasis on corporate governance and transparency among shareholders.
- Role of Law Firm: Kessler Topaz Meltzer & Check, LLP, as the plaintiff's legal representative, focuses on securities fraud cases and aims to secure compensation for investors, reflecting ongoing commitment to protecting investor rights.
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- Class Action Notice: The Portnoy Law Firm informs Ultragenyx Pharmaceutical investors of a class action for those who purchased securities between August 3, 2023, and December 26, 2025, with a deadline for lead plaintiff motions set for April 6, 2026, highlighting the legal risks faced by the company.
- False Statement Allegations: The lawsuit alleges that Ultragenyx misled investors by failing to disclose the risks associated with its drug setrusumab, particularly regarding the potential failure to achieve a statistically significant reduction in annualized fracture rates, indicating significant deficiencies in the company's information disclosure practices.
- Clinical Trial Risks: Ultragenyx's optimism regarding the Phase III Orbit study results is criticized as unrealistic due to the lack of a placebo control group in Phase II results, which may mislead investors about the drug's efficacy and negatively impact the company's reputation.
- Legal Consultation Opportunity: The Portnoy Law Firm offers complimentary case evaluations for affected investors, encouraging them to contact attorneys to discuss options for recovering losses, demonstrating the firm's commitment to protecting investor rights.
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