Gold prices edge higher on raised Fed rate cut hopes
On Tuesday, Stifel analysts maintained a Buy rating on Regenxbio Inc . (NASDAQ:RGNX) with a consistent price target of $40.00. According to InvestingPro data, the stock is currently trading at $9.79, with analysts’ targets ranging from $13 to $52, suggesting significant potential upside. Recent market activity shows strong momentum, with the stock posting a notable 19.7% gain over the past week. The firm highlighted Regenxbio’s recent strategic move to monetize royalties through a deal with Healthcare Royalty (HCRx). This agreement grants the biotechnology company an immediate financial boost of up to $250 million in exchange for royalties and milestones from its gene therapy products, including Zolgensma, RGX-111, and RGX-121, as well as certain NAV licensees.
The deal notably preserves Regenxbio’s full rights to its most significant opportunities in Duchenne muscular dystrophy (DMD) and ophthalmology. According to Stifel, this transaction does not introduce new catalysts but reinforces the potential for upcoming product launches and regulatory submissions, which were already anticipated in the second half of 2026.
Regenxbio’s financial position is strengthened by the $150 million upfront payment from HCRx, extending the company’s cash runway into early 2027. InvestingPro analysis confirms the company’s solid liquidity position, with a healthy current ratio of 2.93 and liquid assets exceeding short-term obligations. When considering all expected non-dilutive funding sources, including milestones from its collaboration with AbbVie (NYSE:ABBV) and potential Priority Review Voucher (PRV) proceeds from RGX-121, the analysts suggest that Regenxbio’s financial resources could stretch well into 2028, covering the commercial launch periods for its DMD and wet age-related macular degeneration (wAMD) treatments. Discover 10+ additional financial health indicators and expert insights with an InvestingPro subscription.
The Stifel analysts also noted that the royalty monetization deal is a non-dilutive, limited recourse agreement, which they describe as "good debt." This financial instrument allows Regenxbio to more aggressively pursue recruitment and pre-commercial activities for its gene therapy pipeline without diluting shareholder equity.
With this agreement, Regenxbio is positioned to capitalize on the underappreciated potential of Zolgensma, which is now supported by new intrathecal administration data indicating a broader application. The company’s strategic financial maneuvering appears to set the stage for sustained development and commercialization efforts in the coming years. InvestingPro data shows impressive revenue growth of 80.7% over the last twelve months, though analysts note the company remains in its growth phase. For comprehensive analysis of Regenxbio’s growth prospects and financial health, access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, REGENXBIO Inc. reported a significant miss in its first-quarter 2025 earnings, with an earnings per share (EPS) of $0.12, well below the forecasted $0.48, and revenue of $89 million, falling short of the expected $107.85 million. Despite these misses, the company remains optimistic about its strategic partnerships and product pipeline. The U.S. Food and Drug Administration (FDA) has accepted REGENXBIO’s Biologics License Application (BLA) for RGX-121, a potential gene therapy for Mucopolysaccharidosis II, granting it Priority Review status with a target action date set for November 9, 2025. This development has been well-received by investors, reflecting confidence in the therapy’s potential market impact.
Additionally, REGENXBIO secured $150 million through a royalty bond agreement with Healthcare Royalty, aimed at extending its cash runway into early 2027. This financial move supports the company’s late-stage activities, including the potential FDA approval of RGX-121 and the submission of a BLA for RGX-202 for Duchenne muscular dystrophy. Stifel analysts have maintained a Buy rating on REGENXBIO shares, reiterating a price target of $40.00, citing the company’s transition towards commercialization and the promising progress of its clinical programs.
REGENXBIO’s strategic partnership with Nippon Shinyaku positions NS Pharma, Inc. to lead the commercialization of RGX-121 in the U.S. upon FDA approval. The company also retains potential non-dilutive funding opportunities, including the sale of a Priority Review Voucher for RGX-121. These developments highlight REGENXBIO’s strategic efforts to advance its gene therapy pipeline and strengthen its financial position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.