Biotech investors, take note: Viridian Therapeutics (NASDAQ: VRDN) might not be dominating headlines right now, but there’s a strong case to be made that this stock is seriously undervalued.

Despite dropping nearly 33% over the past six months, not much has fundamentally changed about the company. Things are quietly progressing as planned, and that’s exactly why now could be a smart time to get in.

Viridian is laser-focused on treating thyroid eye disease (TED), a rare autoimmune condition that affects around 190,000 Americans. Right now, only one drug, Tepezza by Amgen, is FDA-approved for TED, and it pulled in a staggering $460 million in Q4 2024 alone. A full treatment course? Roughly $500,000 per patient. This isn’t just a lucrative market; it is a wide-open one, and Viridian’s pipeline is aiming to do the job better, cheaper, and faster.

The company’s leading drug candidate is Veligrotug, which comes in two flavors: VRDN-001 (an IV version) and VRDN-003 (a subcutaneous version). VRDN-001 has already passed Phase 3 with flying colors, hitting both primary and secondary endpoints with statistical strength. Viridian plans to submit for FDA approval (BLA) in late 2025, with potential approval in the second half of 2026. Meanwhile, VRDN-003 is running through two Phase 3 trials right now, with top-line data expected in the first half of 2026. The end goal? Submit another FDA application by late 2026. It’s a clear, well-paced roadmap.

Financially, Viridian is in solid shape. The company ended Q1 2025 with over $635 million in cash and marketable securities, more than enough to fund operations into the second half of 2027. There’s only $20 million in long-term debt, and insiders (including the CEO and COO) bought over $600,000 worth of shares just a few months ago. That’s a level of conviction you don’t ignore.

Analysts haven’t abandoned ship either. Since the company’s Q1 earnings report in May, 10 firms, including BTIG, Needham, and Wedbush, have reiterated Buy ratings. Price targets range from $34 to $61, representing significant upside from current levels near $15. Only two analysts, Wells Fargo and B. Riley, have Hold ratings, and even they acknowledge the stock’s potential, with targets at $27 and $19, respectively.

So, why is the stock down? Simply put, biotech stocks without major short-term catalysts tend to drift. But smart investors know this is often when the best opportunities arise. With 2026 shaping up to be a breakout year, FDA decisions, Phase 3 data, and potential market disruption, the current price feels like a temporary discount.

There are also a couple of earlier-stage pipeline candidates worth watching: VRDN-006 and VRDN-008, which are FcRn inhibitors aimed at autoimmune diseases like myasthenia gravis. They’re still in early testing, but if they succeed, they could open the door to entirely new revenue streams in a fast-growing market.

For risk-conscious investors, a covered call strategy makes a lot of sense here. Sell calls against your shares to generate income while you wait for the 2026 catalysts to hit. If the stock drifts lower in the meantime, you’ve built in a bit of downside protection and may even get to buy more shares at an even better price.