Drug Stock Reaches New Highs on Growth-Hormone Win

The equity has skyrocketed 66% out of the gate today

The shares of Ascendis Pharma (NASDAQ:ASND) are up 66% at $114.96 this morning, after the company's pediatric growth-hormone drug, TransCon, succeeded in meeting the main goal of a late-stage trial. The win has ASND trading at record highs, and pacing for its best day ever.

Prior to today's rally, the stock was up 10.6% year-to-date, and was struggling to surmountthe $75-$77 area -- home to its previous all-time highs. Now, ASND is traveling well above its old highs, peaking at $115.50 in early trading.

Analysts have shown resounding optimism for Ascendis of late, with all eight giving it a "strong buy" rating. However, there could be some price-target hikes in the cards, as the consensus 12-month target price of $85.78 now represents a steep discount to the stock's current perch.

Meanwhile, plenty of short sellers could be kicking rocks today. Short interest rose 27.3% in the most recent reporting period. At ASND's average daily trading volume, it would take almost a week for bears to cover these pessimistic positions -- hinting atpotential tailwinds in the form of a short squeeze.