H.C. Wainwright lifts Genelux stock target to $31, maintains buy

Wednesday, H.C. Wainwright analyst increased the price target on Genelux Corp. (NASDAQ:GNLX) shares to $31 from the previous $30, while sustaining a Buy rating on the stock. Currently trading at $2.33, the $86.9 million market cap company has received strong analyst support, with consensus targets ranging from $8 to $30. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimate. The revised target follows Genelux’s announcement of its first quarter 2025 earnings and a business update on Tuesday after market close.

Genelux has shared promising preliminary Phase 1b data from the ongoing Phase 1b/2 study of Olvi-Vec combined with platinum and etoposide in the treatment of platinum-relapsed/refractory extensive small cell lung cancer (SCLC). While the company maintains a strong liquidity position with a current ratio of 4.57 and more cash than debt on its balance sheet, InvestingPro data shows rapid cash burn remains a concern. The study, conducted by Genelux’s China partner Newsoara, showed a disease control rate (DCR) of 71% among patients, with two partial responses (PRs) observed according to RECIST 1.1 criteria. This translates to an objective response rate (ORR) of 29%.

The treatment also led to all five evaluable patients experiencing reductions in target lesions, including one patient with a significant 79% tumor reduction. Three patients achieved stable disease with tumor reductions ranging from 24% to 29.2%. The safety profile of Olvi-Vec was favorable and consistent with prior trials, and no maximum tolerated dose has been reached as of the data cutoff on February 19, 2025. The study aims to enroll a total of 36 patients to determine an optimal intravenous recommended phase 2 dose (IV RP2D).

The Phase 2 portion of the trial is expected to enroll approximately 90 patients, with a primary endpoint of ORR by RECIST 1.1 criteria. The analyst noted that the observed ORR in second-line SCLC treatments with checkpoint inhibitors (CPIs) has been only 10-20%, with a median progression-free survival (PFS) of around two months, making the results from Genelux’s study particularly encouraging and suggestive of a benefit over standard of care.

Furthermore, Genelux is seeing increased enrollment in the U.S. Phase 2 trial of systemic Olvi-Vec in recurrent non-small cell lung cancer (NSCLC). Despite recent stock price volatility, with shares down 13.4% in the past week and 36.2% over the last year, the analyst reiterated the Buy rating and expressed confidence in the raised price target, attributing it to the clinical advances and the potential of Olvi-Vec, especially given the transition from intraperitoneal (IP) to systemic administration in solid tumors. Investors seeking deeper insights into Genelux’s financial health metrics and additional analyst recommendations can access 12 exclusive ProTips on InvestingPro.

In other recent news, Genelux Corporation has been the focus of analyst attention due to its ongoing clinical trials and financial updates. The company reported its fourth-quarter 2024 operating expenses at $9.7 million, contributing to a full-year total of $31.7 million. Genelux’s earnings per share for the quarter were recorded at a loss of ($0.26), with an annual EPS of ($0.95). Analysts from H.C. Wainwright have maintained a Buy rating on Genelux, setting a price target of $30, while Benchmark analysts have reaffirmed a Speculative Buy rating with a $25 target.

Both firms expressed optimism based on the company’s clinical trial progress, particularly the promising preliminary data from a Phase 1b/2 trial of Olvi-Vec for small cell lung cancer. The trial demonstrated a 71% disease control rate and was well-tolerated by patients. Genelux is also conducting a Phase 3 trial for ovarian cancer and a Phase 2 trial for non-small cell lung cancer, with results expected in the latter half of 2025. The ongoing trials and financial stability, with $31 million in cash and short-term investments, have bolstered analyst confidence in the company’s future.

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