Genelux stock holds Buy rating, $30 target from H.C. Wainwright

Published 26/03/2025, 12:44
Genelux stock holds Buy rating, $30 target from H.C. Wainwright

On Wednesday, H.C. Wainwright maintained a Buy rating and a $30.00 price target for Genelux Corp. (NASDAQ:GNLX), which currently trades at $3.40. According to InvestingPro data, analysts maintain a Strong Buy consensus with price targets ranging from $8 to $30, suggesting significant upside potential. The stock appears undervalued based on InvestingPro’s Fair Value analysis. The firm’s stance follows the release of promising data from a Phase 1b/2 study on March 25, 2025. The study, conducted by Genelux’s Chinese partner Newsoara, assessed the efficacy of Olvi-Vec in combination with platinum and etoposide in patients with platinum relapsed or platinum refractory small cell lung cancer (SCLC).

The trial included seven patients who were evaluated for efficacy, with a data cut-off date of February 19, 2025. The patients received a single cycle of Olvi-Vec over three consecutive days, followed by platinum and etoposide treatment after 21 days until disease progression or intolerance. This trial marked the first instance of Olvi-Vec being administered systemically (IV) in solid tumors. While the company’s stock has experienced a 15% decline over the past week, it maintains a strong financial health score of "Fair" according to InvestingPro analysis, with a current ratio of 6.47 indicating solid short-term liquidity.

The disease control rate (DCR) was reported at 71% (5 out of 7 patients), with two patients achieving a partial response (PR) as per RECIST 1.1 criteria, translating to an overall response rate (ORR) of 29% (2 out of 7 patients). One patient experienced a tumor reduction of approximately 79%. Additionally, three patients who attained stable disease (SD) showed tumor reductions between 20-29%. All individual target lesions in patients showed reductions, indicating the treatment’s activity.

H.C. Wainwright highlighted the significance of these findings, suggesting that the positive results from the trial de-risk the systemic administration of Olvi-Vec. The firm believes that these outcomes could pave the way for Olvi-Vec’s effectiveness in a broader range of solid tumors, including non-small cell lung cancer (NSCLC), which is currently under Phase 2 investigation by Genelux. Results for this are anticipated in mid-2025. The reiteration of the Buy rating and the $30 price target reflects the firm’s confidence in the potential of Olvi-Vec based on the recent data. Despite recent volatility, the stock has posted an impressive 61% gain over the past six months. InvestingPro subscribers have access to 13 additional investment tips and comprehensive financial metrics to better evaluate GNLX’s potential.

In other recent news, Genelux Corporation has announced the appointment of Matthew Pulisic as its new Chief Financial Officer. This change comes as Lourie Zak stepped down from the CFO position, effective January 29, 2025. Pulisic, who has a robust background in financial leadership from his previous roles at Arrowhead Pharmaceuticals (NASDAQ:ARWR) and Amgen (NASDAQ:AMGN), will receive a base salary of $410,000 and is eligible for an annual discretionary bonus of up to 40% of his base salary. Additionally, he has been granted an option to purchase 275,000 shares of Genelux stock at $3.95 per share, which will vest over four years. Zak will continue to serve as a non-employee advisor until August 29, 2025, with a separation package that includes six months of her base salary and COBRA health insurance continuation. The leadership transition is part of Genelux’s strategic efforts to bolster its executive team. The company is also advancing its clinical pipeline, with its leading product candidate, Olvi-Vec, currently in a Phase 3 trial for treating platinum-resistant/refractory ovarian cancer. Further details regarding these changes are expected in Genelux’s upcoming quarterly report.

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