Lucid Capital Markets initiates Genelux stock with Buy rating, $10 target

Investing.com - Lucid (NASDAQ:LCID) Capital Markets initiated coverage on Genelux Corp. (NASDAQ:GNLX) with a Buy rating and a $10.00 price target on Monday. The stock, which has delivered an impressive 50% return over the past year, currently trades at $3.33. According to InvestingPro analysis, the company’s current market capitalization stands at $124.3 million.

The clinical-stage biotechnology company is developing oncolytic viral immunotherapies for cancer treatment, with its lead asset Olvi-Vec targeting platinum-resistant/refractory ovarian cancer (PRROC) and lung cancer. Olvi-Vec is designed to destroy cancer cells while stimulating the immune system to fight tumors. The company maintains a strong liquidity position with a current ratio of 4.67, indicating solid short-term financial stability.

Lucid Capital Markets highlighted upcoming data readouts as potential catalysts, including second-line non-small cell lung cancer (NSCLC) results expected in the second half of 2025 and pivotal fourth-line PRROC data in the first half of 2026. The firm estimates peak sales for Olvi-Vec could reach approximately $2.5 billion.

The $10 price target is primarily driven by Olvi-Vec, which accounts for about $9 per share of the valuation, with the remainder attributed to earlier pipeline and platform value. Genelux’s Chinese partner, Newsoara, is also investigating Olvi-Vec in small cell lung cancer.

As of the first quarter of 2025, Genelux reported approximately $35.1 million in cash and equivalents, which Lucid Capital Markets believes could provide runway through several key data readouts and into the third quarter of 2026. InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, though it’s currently burning through cash rapidly. Subscribers can access 8 additional ProTips and comprehensive financial metrics to better evaluate GNLX’s investment potential.

In other recent news, Genelux Corp. announced its first quarter 2025 earnings and provided a business update. The company shared promising preliminary data from a Phase 1b/2 study of Olvi-Vec in combination with other treatments for small cell lung cancer. The study showed a disease control rate of 71%, with an objective response rate of 29% among patients. All five evaluable patients experienced reductions in target lesions, with one patient achieving a significant 79% tumor reduction. The safety profile of Olvi-Vec was favorable, and no maximum tolerated dose has been reached. H.C. Wainwright responded to these developments by increasing the price target for Genelux shares to $31, maintaining a Buy rating. The analyst expressed confidence in the raised target, citing clinical advances and the potential of Olvi-Vec. Additionally, Genelux is experiencing increased enrollment in its U.S. Phase 2 trial for recurrent non-small cell lung cancer. These developments suggest a potential benefit over standard care, according to the analyst from H.C. Wainwright.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.