Regenxbio stock maintains Outperform rating at Raymond James on solid cash runway

Published 07/08/2025, 17:44
Regenxbio stock maintains Outperform rating at Raymond James on solid cash runway

Investing.com - Raymond (NSE:RYMD) James has reiterated an Outperform rating and $29.00 price target on Regenxbio Inc . (NASDAQ:RGNX) following the company’s second-quarter 2025 financial results. According to InvestingPro analysis, RGNX appears undervalued at current levels, with analyst targets ranging from $13 to $52.

Regenxbio reported approximately $21.4 million in total revenues for the quarter, exceeding Raymond James’ estimate of about $20 million. The company posted earnings per share of $(1.38), compared to the analyst’s projection of $(1.24).

The gene therapy company ended the second quarter with approximately $364 million in cash and equivalents, which management indicates will provide runway into early 2027, an improvement from the previous guidance of second half 2026.

Raymond James noted that the cash runway projection does not include potential additional funds from ABBV-RGX-314 (Sura-vec) milestones, including a possible $100 million payment upon dosing the first patient in a Phase 2b/3 suprachoroidal delivery trial in diabetic retinopathy.

The financial outlook also excludes potential proceeds from selling a priority review voucher upon approval of RGX-121 in MPS II, which typically sells for approximately $150 million or more in the current market.

In other recent news, REGENXBIO Inc. announced it will advance its diabetic retinopathy treatment to a Phase IIb/III clinical trial following positive results from a previous study. This progression is significant as the company will receive $100 million from AbbVie (NYSE:ABBV) once the first participant is dosed in the trial, with an additional $100 million upon dosing in a subsequent Phase III trial. Furthermore, REGENXBIO released preclinical research showing that its microdystrophin gene therapy with a C-terminal domain improved muscle function in Duchenne muscular dystrophy models. The therapy demonstrated higher protein levels and increased muscle force in treated mice. Analysts from H.C. Wainwright and Stifel have reiterated Buy ratings on REGENXBIO stock after positive interim data from the AFFINITY DUCHENNE trial. The trial showed improvements in functional measures for participants, suggesting the treatment may delay disease progression. The data highlighted RGX-202’s efficacy and safety, with patients showing improved performance and biomarker data indicating high microdystrophin expression levels. These developments reflect REGENXBIO’s ongoing progress in its therapeutic endeavors.

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