Benchmark maintains $25 target on Genelux following trial data

Published 26/03/2025, 14:28
Benchmark maintains $25 target on Genelux following trial data

On Wednesday, Benchmark analysts maintained their Speculative Buy rating and a $25.00 price target on Genelux Corporation (NASDAQ:GNLX), following the company’s announcement of positive preliminary safety and efficacy data from a clinical trial. According to InvestingPro data, while the stock has seen a 61% surge over the past six months, it recently experienced a 15% decline in the past week. With analyst targets ranging from $8 to $30, the stock appears undervalued at its current market capitalization of $116 million. Genelux is currently conducting a Phase 1b/2 trial of Olvi-Vec immunochemotherapy for patients with platinum-relapsed or platinum-refractory extensive small cell lung cancer. Olvi-Vec represents a novel immunotherapy approach that uses an oncolytic virus to target aggressive and/or difficult-to-treat solid tumors.

The recent trial highlighted the systemic, intravenous administration of Olvi-Vec, which is another method preferred by physicians in addition to the intraperitoneal route used in the OnPrime PRROC trial. The initial dose escalation cohorts have shown promising results, with a 71% disease control rate (5 out of 7 patients) and two cases of partial response. The treatment was generally well-tolerated by patients and demonstrated a favorable safety profile. InvestingPro analysis reveals the company maintains a strong current ratio of 6.47, with more cash than debt on its balance sheet, providing financial flexibility for continued clinical development.

The ongoing enrollment for the OLVI-VEC-SCLC-202 trial’s dose escalation cohorts aims to further investigate the safety of Olvi-Vec and establish the recommended intravenous dose for the subsequent Phase 2 trial. The data obtained so far align with previous studies, suggesting that Olvi-Vec can be administered systemically across multiple solid tumor types. This supports the company’s development strategy, as stated by the Benchmark analyst.

Genelux’s focus on developing versatile administration routes for Olvi-Vec could potentially broaden the treatment’s applicability and improve patient outcomes in various solid tumor indications. The company’s continued progress in the clinical trial phases is an essential step towards achieving this goal. With its next earnings report due in 12 days, investors can access 11 additional exclusive InvestingPro Tips and comprehensive financial metrics to make informed investment decisions.

In other recent news, Genelux Corporation reported promising data from a Phase 1b/2 study concerning their product Olvi-Vec, which was conducted by their Chinese partner, Newsoara. The study focused on patients with platinum relapsed or refractory small cell lung cancer and showed a disease control rate of 71%, with an overall response rate of 29%. H.C. Wainwright maintained a Buy rating for Genelux, with a price target of $30, citing the trial’s positive results as a factor in their analysis. These developments suggest potential for Olvi-Vec in treating a broader range of solid tumors, with further results expected in mid-2025.

Additionally, Genelux appointed Matthew Pulisic as the new Chief Financial Officer, following the departure of Lourie Zak. Pulisic brings over 19 years of biopharmaceutical industry experience, previously serving as Vice President of Finance at Arrowhead Pharmaceuticals (NASDAQ:ARWR). His appointment includes a base salary of $410,000 and an inducement stock option to purchase 275,000 shares of Genelux stock. This leadership transition is part of Genelux’s strategy to bolster its executive team amid ongoing clinical advancements. The company has filed the necessary documents with the SEC, with further details anticipated in their upcoming quarterly report.

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