JPMorgan reiterates overweight rating on Replimune stock after ASCO

Published 03/06/2025, 15:56
JPMorgan reiterates overweight rating on Replimune stock after ASCO

On Tuesday, JPMorgan analysts reaffirmed their Overweight rating and a $16.00 price target for Replimune Group stock (NASDAQ: NASDAQ:REPL), suggesting significant upside from the current price of $9.16. According to InvestingPro data, analyst consensus remains bullish with price targets ranging from $16 to $31, reflecting strong confidence in the company’s potential. The analysts highlighted key takeaways from a recent investor lunch at ASCO 2025, focusing on the anticipated approval of RP1 for anti-PD1 failed melanoma. They noted a high probability of timely approval, with the PDUFA date set for July 22, 2025, and emphasized the underappreciated market opportunity of approximately $600 million in the U.S. refractory setting.

Replimune has reported consistent communication with the Agency regarding the RP1 BLA filing, with no red flags identified. The company has completed late-cycle reviews and manufacturing inspections and expects to begin labeling negotiations soon. With RP1 approval, Replimune aims to have 150 centers ready for injection on day one, primarily focusing on academic centers. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 7.95, though it’s currently experiencing significant cash burn as it prepares for commercial launch.

The company presented data at ASCO, demonstrating similar efficacy and safety for RP1 when injected into both superficial and deep lesions, such as those in the liver and lungs. Additionally, Replimune addressed concerns about the cleanup process by presenting evidence that RP1 is neutralized within 30 seconds using standard disinfectants.

Replimune’s commercial strategy includes a team of around 60 professionals, encompassing medical science liaisons, sales managers, interventional radiology coordinators, and marketing managers. The analysts reiterated their Overweight rating based on RP1’s long-term potential in treating refractory melanoma. The company, currently valued at $710 million, has shown strong recent momentum with a 13.66% gain over the past week and demonstrates relatively low volatility with a beta of 0.61. For deeper insights into Replimune’s financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Replimune Group has reported its first-quarter earnings for 2025, revealing a significant shortfall in expected earnings per share (EPS). The company posted an EPS of -$3.07, considerably missing the forecasted -$0.72. Despite this earnings miss, Replimune noted an increase in its cash and cash equivalents to $483.8 million, extending its financial runway into the fourth quarter of 2026. Piper Sandler analysts have responded to recent updates by raising their price target for Replimune stock from $14 to $22, maintaining an Overweight rating. The analysts cited additional RP1 data disclosed at the ASCO conference and Replimune’s FY4Q25/YE25 report as key factors for the adjustment. Replimune is also preparing for a potential commercial launch of RP1, a product that has received breakthrough therapy designation, with a PDUFA date set for July 2025. The company has expanded its operations, including a new manufacturing facility and a 60-person commercial team, in anticipation of this launch. Piper Sandler expressed confidence in Replimune’s commercial preparedness, although some investor skepticism about RP1’s approvability remains.

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