Guggenheim maintains $10 target on Inflarx despite study halt

Published 28/05/2025, 16:26
Guggenheim maintains $10 target on Inflarx despite study halt

On Wednesday, Guggenheim reiterated its Buy rating and $10.00 price target for Inflarx NV (NASDAQ:IFRX) shares, representing significant upside from the current price of $0.74. This affirmation comes despite the announcement that the Phase III study of vilobelimab for ulcerative pyoderma gangrenosum (PG) will be discontinued. The Independent (LON:IOG) Data Monitoring Committee (IDMC) recommended halting the study due to a lack of sufficient clinical benefits to proceed. According to InvestingPro data, the stock has shown strong returns over the past week, though it currently trades near its 52-week low.

Inflarx reported that while no unexpected adverse effects were observed with the drug, the decision was made not to advance into a larger study population. The company is now shifting focus to INF904, an oral C5aR inhibitor, with a Phase IIa basket study for chronic spontaneous urticaria (CSU) and hidradenitis suppurativa (HS) expected to have results by this summer. With a beta of 1.59, InvestingPro analysis indicates the stock exhibits higher volatility than the broader market.

The upcoming readout of the basket study is anticipated to be the next significant event for investors. Inflarx is also considering strategies to extend their financial runway and maximize cost savings. This may involve expanding the basket study to include a maintenance dosing arm, though further details will be provided by the management in the coming months.

Despite the setback with the PG study, Guggenheim’s outlook remains positive on Inflarx’s potential in immuno-dermatology through targeting the C5a/C5aR axis. The firm’s confidence is supported by Inflarx’s substantial cash reserves, which were reported to be approximately $75 million, or about $1.10 per share, at the end of the first quarter of 2025.

In other recent news, Inflarx NV has reported significant progress in its financial and clinical developments. The company posted a first-quarter 2025 earnings per share (EPS) of (€0.13), surpassing analyst expectations of (€0.21). Research and development expenses were €8.0 million, below the consensus of €8.7 million. Guggenheim Securities has raised its price target for Inflarx to $10, maintaining a Buy rating, in light of the company’s solid financial standing and clinical advancements. Raymond (NSE:RYMD) James continues to endorse Inflarx with a Strong Buy rating and a $13 price target, highlighting the potential of its drug candidates, particularly vilobelimab and INF904. Cantor Fitzgerald initiated coverage with an Overweight rating and a $10 target, citing the upcoming Phase 3 interim analysis for vilobelimab as a potential catalyst. The European Commission’s marketing authorization for vilobelimab for SARS-CoV2-induced ARDS is seen as a positive step, although its market impact remains uncertain. With a proforma cash balance of approximately €84 million, Inflarx is financially positioned to fund operations into 2027. Analysts from these firms express optimism about upcoming data from clinical trials, which could further influence Inflarx’s standing in the market.

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