UroGen stock holds Buy rating, $64 target from H.C. Wainwright

Tuesday, UroGen Pharma (NASDAQ:URGN) maintained its Buy rating and a $64.00 price target from H.C. Wainwright, following the company’s recent announcements. Last week, UroGen expanded its oncology pipeline with the acquisition of assets from IconOVir Bio, including a next-generation oncolytic virus, ICVB-1042. This move complements UroGen’s existing research, particularly in bladder cancer treatments. The company, currently trading at $9.74, has demonstrated strong operational execution with impressive gross profit margins of 90.27% and revenue growth of 15.64% over the last twelve months. InvestingPro analysis indicates the stock is currently undervalued, with analyst targets ranging from $22 to $64.

The firm’s analyst highlighted the strategic significance of UroGen’s latest acquisition, noting the potential of ICVB-1042 to activate the immune system within the tumor microenvironment (TME). This approach aims to selectively destroy cancer cells and stimulate a robust immune response. The analyst drew parallels between ICVB-1042 and Bacillus Calmette-Guérin (BCG) therapy, a biological agent used in bladder cancer treatment, but with the potential for greater selectivity and potency. According to InvestingPro data, UroGen maintains a strong financial position with a current ratio of 9.0, indicating robust liquidity to support its research initiatives. For deeper insights into UroGen’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In addition to acquiring ICVB-1042, UroGen has entered into multiple strategic research collaborations to explore the use of its proprietary RTGel technology. This technology could enhance the clinical effectiveness of various immunotherapies. The analyst expressed optimism that ICVB-1042 could enable UroGen to address more advanced stages of bladder cancer, thus complementing its UGN-102 candidate, which targets low-grade, intermediate-risk, non-invasive bladder cancer (LG-IR-NMIBC).

The comparison was also made to cretostimogene grenadenorepvec, another oncolytic virus candidate in late-stage development for intravesical delivery. H.C. Wainwright’s stance on UroGen’s stock remains positive, with the firm awaiting proof-of-concept clinical data on ICVB-1042 in bladder cancer before attributing additional value to the program. The reiterated Buy rating and 12-month price target reflect confidence in UroGen’s strategic direction and potential in the oncology market.

In other recent news, UroGen Pharma Ltd. has made significant strides in cancer treatment, highlighted by its acquisition of the oncolytic virus ICVB-1042 from IconOVir Bio, Inc. This strategic move, completed with a $4.0 million issuance in ordinary shares and future milestone payments, aims to enhance UroGen’s offerings in bladder and specialty cancers. Additionally, UroGen’s JELMYTO, an FDA-approved treatment, has shown promising long-term effectiveness in patients with low-grade upper tract urothelial cancer, with a median duration of response of nearly four years. This data, published in The Journal of Urology, supports JELMYTO’s potential for sustained disease control.

Furthering its research, UroGen is actively exploring the benefits of maintenance therapy for JELMYTO, as initial findings indicate higher recurrence-free survival rates in certain patients. In another development, UroGen reported positive results from its Phase 3 ENVISION study of UGN-102, demonstrating a 79.6% complete response rate at three months for low-grade intermediate-risk non-muscle-invasive bladder cancer. The company has submitted a New Drug Application for UGN-102 to the FDA, with a decision expected by June 2025.

UroGen continues to leverage its proprietary RTGel technology to improve therapeutic profiles, allowing for sustained exposure to medications in the urinary tract. These advancements underscore UroGen’s ongoing commitment to developing innovative cancer treatments, with a focus on addressing unmet medical needs.

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