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On Tuesday, Piper Sandler initiated coverage on Engene Holdings Inc. (NASDAQ:ENGN) with an Overweight rating and set a price target of $26.00, representing potential upside of over 340% from the current price of $5.90. The firm's analysts highlighted the potential of Engene's gene therapy asset, detalimodene, in the treatment of non-muscle invasive bladder cancer (NMIBC). According to InvestingPro data, the stock appears undervalued based on its proprietary Fair Value model.
Engene's detalimodene is poised to become a preferred early-line treatment in the NMIBC space, which is expected to grow with the introduction of novel intravesical therapies. According to Piper Sandler, the therapy has shown an approvable efficacy profile that is anticipated to improve with amendments to the ongoing LEGEND trial. The safety profile of detalimodene has also been described as very clean. With a market capitalization of $301 million, the company maintains a strong balance sheet with a current ratio of 16.87.
The analysts noted the ease of administration of detalimodene as a significant advantage over competitors, which is an important factor for urology clinics. Despite the positive outlook, Engene's enterprise value (EV) is currently around $40 million, which is considered a significant discount compared to its peers. InvestingPro analysis reveals a relatively low debt-to-equity ratio of 0.09, suggesting financial flexibility. Piper Sandler expects this valuation gap to narrow as more data becomes available, particularly with updates expected in the second half of 2025.
Engene is expected to file a Biologics License Application (BLA) by mid-2026. Piper Sandler forecasts that U.S. revenue for detalimodene will begin in 2027 and predicts substantial growth, reaching over $500 million by 2033. With analyst targets ranging from $7 to $37 and a consensus "Buy" rating, the stock's potential appears significant. For deeper insights into Engene's financial health and growth prospects, including exclusive ProTips and detailed valuation metrics, visit InvestingPro.
In other recent news, Engene Holdings Inc. has seen significant developments. H.C. Wainwright initiated coverage on the company with a Buy rating, highlighting the potential of Engene's gene therapy platform and its lead candidate, detalimogene voraplasmid, currently under evaluation for high-risk non-muscle invasive bladder cancer. Promising clinical data has positioned Engene ahead of recent approvals in the same therapeutic area.
In addition to this, Engene has entered into a sales agreement with Jefferies LLC, enabling the company to periodically sell up to $100 million of its common shares. This strategy aims to bolster the company's capital, but no shares will be offered or sold in Canada.
Furthermore, JMP Securities has given Engene a Market Outperform rating, anticipating increased utilization of therapeutics in the treatment of non-muscle invasive bladder cancer. Engene's product, detalimogene, is highlighted for its potential advantages in this growing market. These recent developments indicate a positive trajectory for Engene Holdings Inc. in the biotech industry.
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