Lake Street Capital Markets initiates Genelux stock with Buy rating

Investing.com - Lake Street Capital Markets initiated coverage on Genelux Corp. (NASDAQ:GNLX) with a Buy rating and a price target of $16.00 on Tuesday. According to InvestingPro data, analyst targets for the stock range from $10 to $31, with the stock currently trading above its Fair Value estimate.

The research firm highlighted the potential of Genelux’s lead candidate Olvimulogene Nanivacirepvec (Olvi-Vec), which is currently in a Phase 3 trial for platinum-resistant or refractory ovarian cancer, with pivotal data expected in the first half of 2026. The company maintains a strong financial position, with InvestingPro analysis showing more cash than debt on its balance sheet and a healthy current ratio of 4.18.

Lake Street noted that in the Phase 2 VIRO-15 trial, Olvi-Vec demonstrated the ability to resensitize ovarian cancer patients to platinum-based chemotherapy, achieving a 54% response rate and an 11-month progression-free survival rate.

The firm emphasized that these results represent a significant improvement over currently approved treatments for this line of therapy in ovarian cancer, which it described as a deadly indication that has seen less innovation than other cancer types.

Lake Street forecasts that Olvi-Vec could reach peak U.S. sales of $2 billion in ovarian cancer alone, with the randomized Phase 3 OnPrime Study, initiated in September 2022, currently testing Olvi-Vec with platinum doublet therapy and Avastin against investigator’s choice chemotherapy plus Avastin.

In other recent news, Genelux Corp. has been the focus of attention from multiple analyst firms. H.C. Wainwright reaffirmed its Buy rating for Genelux, maintaining a price target of $31.00. This comes in the wake of regulatory challenges faced by a competitor, Replimune, which received a Complete Response Letter from the FDA for its oncolytic virus treatment. Meanwhile, Lucid Capital Markets has initiated coverage on Genelux with a Buy rating and a $10.00 price target. Both firms highlight the company’s ongoing work in developing oncolytic viral immunotherapies. Genelux’s lead asset, Olvi-Vec, is aimed at treating platinum-resistant/refractory ovarian cancer and lung cancer. These developments underscore the continued interest in Genelux’s potential within the biotechnology sector.

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