Bank of America just raised its EUR/USD forecast
On Tuesday, William Blair initiated coverage on Immunic Inc. (NASDAQ:IMUX) with an Outperform rating, highlighting the potential of its relapse-remitting multiple sclerosis (RMS) therapy, vidofludimus calcium. With a market capitalization of $105 million and trading at $1.17, InvestingPro analysis indicates the stock is currently undervalued. The analyst pointed to this undervaluation and the de-risked nature of the RMS indication as reasons for this positive outlook.
The firm’s analysis suggests that the success of Aubagio, a first-generation DHODH inhibitor, in treating RMS sets a precedent for the efficacy of vidofludimus calcium. While InvestingPro data shows the company holds more cash than debt and maintains a healthy current ratio of 2.71, it’s currently burning through cash rapidly. Immunic’s ongoing ENSURE-1/2 Phase III pivotal studies are expected to provide results in the second quarter and second half of 2026, respectively.
The analyst emphasized vidofludimus calcium’s potential for superior safety due to its selective inhibition of DHODH, which is 2.6 times more potent than Aubagio and does not affect off-target kinases. This safety profile could be particularly advantageous given recent challenges faced by competitors in the RMS treatment market.
The recent discontinuation of tolebrutinib’s pursuit of regulatory approval for RMS by Sanofi (NASDAQ:SNY) was also noted. The analyst believes that this development, coupled with the expected efficacy and safety of vidofludimus calcium, positions Immunic’s therapy as a disruptive force in the oral RMS therapy market.
The positive assessment from William Blair adds to the anticipation around Immunic’s progress in the development of vidofludimus calcium. With analyst price targets ranging from $5 to $28, and a strong consensus recommendation of 1.29 (where 1 is Strong Buy), the market appears optimistic about Immunic’s prospects. The company’s stock performance will be closely watched as the ENSURE-1/2 study results approach in the coming years. Discover more detailed insights and 8 additional ProTips about IMUX with an InvestingPro subscription, including comprehensive financial health metrics and expert analysis.
In other recent news, Immunic Inc. has shared promising results from its Phase 1b clinical trial for its oral treatment candidate, IMU-856. The trial demonstrated a significant increase in glucagon-like peptide-1 (GLP-1) levels, which is linked to weight management, and a reduction in body weight gain and food consumption. These findings suggest potential applications in obesity treatment, a market projected to exceed $170 billion by 2031. Meanwhile, H.C. Wainwright reiterated a Buy rating for Immunic with a $10 price target, highlighting the potential of IMU-856 and the ongoing development of vidofludimus calcium. This latter candidate is involved in Phase 3 trials for relapsing multiple sclerosis and Phase 2 trials for progressive multiple sclerosis. Piper Sandler also mentioned Immunic in its outlook, noting the company’s key Phase 2b readouts expected in 2025. The firm emphasized the potential catalysts for Immunic and other biotech companies, which could impact investor decisions. Immunic is preparing for further clinical testing of IMU-856, which remains investigational and unapproved by regulatory authorities.
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