BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
Investing.com - H.C. Wainwright has reiterated its Buy rating and $31.00 price target on Genelux Corp. (NASDAQ:GNLX), representing significant upside from the current price of $3.30. The firm maintains its positive outlook on the company’s oncolytic virus program despite recent regulatory challenges faced by a competitor in the space. According to InvestingPro data, analysts maintain a strong Buy consensus with price targets ranging from $10 to $31.
The reaffirmation comes after Replimune received a Complete Response Letter (CRL) from the FDA for its oncolytic virus treatment RP1 (vusolimogene oderparepvec) in advanced melanoma. The FDA stated that Replimune’s IGNYTE trial was not considered adequate to provide substantial evidence of effectiveness, citing issues with patient population heterogeneity. While Genelux faces its own challenges, InvestingPro data shows the company maintains a strong financial position with a healthy current ratio of 4.67 and minimal debt-to-equity of 0.06.
H.C. Wainwright analyst Emily Bodnar emphasized that despite both companies developing oncolytic virus therapies, Replimune’s setback should not be viewed as a negative readthrough for Genelux’s Olvi-Vec program, which is currently in Phase 3 development for platinum resistant/refractory ovarian cancer (PRROC).
The key distinction highlighted by the analyst is that Genelux’s Phase 3 trial employs a controlled study design, evaluating 186 patients randomized to Olvi-Vec plus platinum-doublet and bevacizumab versus physician’s choice of chemotherapy with bevacizumab.
Replimune’s RP1, which is based on a proprietary strain of herpes simplex virus engineered with a fusogenic protein and GM-CSF, had demonstrated a 31.4% overall response rate with a 12.2% complete response rate in its single-arm Phase 1/2 IGNYTE trial of 156 patients. Despite market volatility, Genelux has shown remarkable resilience with a 52.78% return over the past year. Unlock more insights about Genelux’s potential with InvestingPro, which offers 12 additional investment tips and comprehensive financial analysis.
In other recent news, Genelux Corp. announced its first quarter 2025 earnings and provided a business update, revealing promising preliminary Phase 1b data from its ongoing study of Olvi-Vec. The study, in collaboration with its China partner Newsoara, targets platinum-relapsed/refractory extensive small cell lung cancer and demonstrated a disease control rate of 71%, with an objective response rate of 29%. Following this announcement, H.C. Wainwright increased its price target for Genelux to $31 while maintaining a Buy rating. Additionally, Lucid (NASDAQ:LCID) Capital Markets initiated coverage on Genelux with a Buy rating and set a price target of $10. These recent developments highlight continued interest and positive outlooks from analysts regarding Genelux’s progress in cancer treatment.
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