H.C. Wainwright maintains Immunic stock Buy rating, $10 target

On Friday, H.C. Wainwright reiterated its Buy rating and $10.00 price target for Immunic Inc. (NASDAQ:IMUX), representing significant upside from the current price of $1.18. The firm’s analyst, Andrew Fein, provided insights following Immunic’s announcement regarding a post-hoc analysis of its novel oral molecule IMU-856. This analysis indicates a potential impact on GLP-1 levels, which could be significant for obesity management. According to InvestingPro data, analyst price targets for IMUX range from $5 to $28, reflecting diverse opinions on the company’s potential.

Fein recognized the Phase 1b findings as initially encouraging, noting a dose-dependent increase in endogenous GLP-1 levels. He also pointed out the preclinical support that showed a dose-dependent reduction in body weight gain and food consumption. Despite these findings being post-hoc, the analyst believes they warrant further exploration, which may involve future funding or partnerships. InvestingPro data shows the company holds more cash than debt on its balance sheet, though it’s currently burning through cash rapidly - crucial factors for potential future development programs.

The analyst’s focus remains on Immunic’s lead oral candidate, vidofludimus calcium (IMU-838), with the Phase 2 CALLIPER trial results for progressive MS (PMS) patients expected in April 2025. Additionally, the ongoing pivotal development of vidofludimus calcium in the Phase 3 ENSURE program for relapsing MS (RMS) was highlighted. The interim analysis for this program has passed futility testing and maintained sample sizes, which Fein views as de-risking the asset in RMS. With a market capitalization of $106.2 million and a beta of 1.87, IMUX shows considerable volatility, typical for clinical-stage biotech companies.

Fein concluded that IMU-856 not only demonstrates the platform’s upside but is also well-positioned for potential strategic partnering, licensing, or financing for its future Phase 2 development. The reiterated Buy rating and price target reflect the firm’s confidence in Immunic’s strategic direction and pipeline potential. The stock has shown strong momentum recently, with an 18% return over the past week. For deeper insights into IMUX’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.

In other recent news, Immunic, Inc. has shared promising results from its phase 1b clinical trial for the oral treatment candidate IMU-856, showing a significant increase in glucagon-like peptide-1 (GLP-1) levels and potential benefits in weight management. The company is preparing for further clinical testing, as the drug has shown a reduction in body weight gain and food intake in preclinical studies. Additionally, Piper Sandler’s report on biotechnology catalysts highlights Immunic as one of the companies with key Phase 2b readouts expected in 2025, indicating potential developments in its pipeline.

H.C. Wainwright has initiated coverage of Immunic with a Buy rating, citing the positive interim analysis from the Phase 3 ENSURE trial for relapsing multiple sclerosis (MS) as a significant de-risking factor. The firm’s optimism is bolstered by the dual mode of action of Immunic’s drug vidofludimus calcium, which shows promise for both neuroprotection and relapse prevention in MS treatment. The upcoming results from the Phase 2 CALLIPER trial in progressive MS are anticipated to further support this outlook.

In corporate news, Immunic announced updated employment terms for its CEO, Dr. Daniel Vitt, following his temporary relocation to the United States. Dr. Vitt will maintain his role as CEO with his current salary and benefits, while his service on the management board of Immunic AG will be paused during his stay. These developments reflect Immunic’s strategic adjustments in its leadership structure and ongoing clinical advancements.

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