Immunic shares hold steady price target, overweight on MS program potential

Published 04/09/2024, 14:12
Immunic shares hold steady price target, overweight on MS program potential

On Wednesday, Piper Sandler maintained a positive outlook on shares of Immunic Inc. (NASDAQ:IMUX), reiterating an Overweight rating and a $28.00 price target for the company's stock. The firm's analysis highlighted the potential of Immunic's Multiple Sclerosis (MS) program, emphasizing the underappreciated value of the company's developments in this area.

Immunic's vidofludimus calcium MS program has been noted for its unique qualities as a Nurr1 activator, a property that could allow it to penetrate the MS market, which is valued at over $23 billion. The treatment is recognized for its oral administration convenience and its applicability to both Relapsing-Remitting MS (RMS) and the more challenging Primary-Progressive MS (PMS).

Piper Sandler delved into 32 investor questions about the program, noting a low risk and high probability of success for the upcoming ENSURE-1 and ENSURE-2 trials in RMS, with full data expected in the second quarter of 2026 and the second half of 2026, respectively. The firm also discussed the potential for vidofludimus calcium to make an impact in the PMS market, with the CALLIPER trial's top-line data anticipated in April 2025.

The firm's commentary underscores the belief that the market has not fully recognized Immunic's MS program's potential. The Nurr1 activator's differentiating factors and the prospects for success in clinical trials could contribute to a significant market presence for Immunic in the treatment of MS.

In other recent news, Immunic Inc. has reported a Q1 2024 loss of $29.6 million, a sharp increase from the previous year's Q1 net loss of $2.3 million. Despite this, the company successfully raised $240 million through a private placement, projected to fund operations through Q3 2025. The company has also extended the contract of its Executive Chairman, Dr. Duane Nash, to December 31, 2025, and increased his monthly base salary from $32,368 to $33,987.

On the analysis front, B.Riley initiated coverage on Immunic with a Buy rating, expressing confidence in the potential of Immunic's lead drug candidate, vidofludimus calcium, for treating multiple sclerosis. In terms of leadership changes, Simona Skerjanec, a veteran in the pharmaceutical industry, has been appointed to its board of directors, and Jason Tardio has joined Immunic as its new Chief Operating Officer and President.

In addition, Werner Gladdines was promoted to Chief Development Officer. Lastly, at their annual meeting, the appointment of Baker Tilly US, LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024, was ratified. These are the recent developments at Immunic Inc.

InvestingPro Insights

Piper Sandler's optimistic stance on Immunic Inc. (NASDAQ:IMUX) is further informed by key financial metrics and market performance data. InvestingPro Data reveals that Immunic has a market capitalization of approximately $126.11 million, indicating a modest size within the biotech industry. The company's Price to Book ratio, as of the last twelve months leading up to Q2 2024, stands at 1.98, which can be attractive if the company's assets are of high quality and have potential for growth.

InvestingPro Tips highlight the company's financial health and stock characteristics. Immunic holds more cash than debt, which is a positive sign for financial stability. Moreover, the company's liquid assets exceed short-term obligations, providing some cushion for operational needs.

However, the analysts' consensus, as indicated by InvestingPro Tips, does not anticipate Immunic to be profitable this year, and the company has not been profitable over the last twelve months. Despite these challenges, the stock has shown a strong return over the last three months, with a 15.7% price total return, reflecting a degree of investor confidence in its potential.

For investors seeking more detailed analysis and additional insights, there are 8 more InvestingPro Tips available at: https://www.investing.com/pro/IMUX. These tips could provide a deeper understanding of Immunic's financial nuances and help investors make more informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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