On Monday, H.C. Wainwright maintained a Buy rating and a $13.00 price target for Genfit (NASDAQ:GNFT) shares, a biopharmaceutical company. The firm's analyst highlighted the commencement of royalty payments by Genfit to its partner Ipsen for the drug Iqirvo, which is used to treat Primary Biliary Cholangitis (PBC).
Genfit has started the invoicing process for the first U.S. royalty payments to Ipsen. This follows Ipsen's acquisition of the global rights to develop and market Iqirvo, with the exception of certain Asian regions. Since June 2024, Ipsen has been marketing Iqirvo in the U.S. Genfit received a milestone payment of €48.7 million from Ipsen after the first U.S. commercial sale of Iqirvo, which was invoiced in June and received by August. The company is also entitled to tiered double-digit net sales royalties of up to 20%.
The company is anticipating a decision from the European Commission (EC) on market authorization for Iqirvo in Europe in the second half of 2024. A positive opinion from the EMA's Committee for Medicinal Products for Human Use (CHMP) in July supports the likelihood of approval. Additionally, a pricing and reimbursement approval in three European countries would lead to a milestone payment of €26.5 million.
Beyond Iqirvo, Genfit is looking forward to potential milestones from its programs targeting acute on chronic liver failure (ACLF) and its cholangiocarcinoma (CCA) candidate, GNS561. The company's focus has largely shifted to these areas since the partnership with Ipsen for Iqirvo.
With the U.S. commercialization underway and the European decision pending, Genfit's partnership with Ipsen is poised to provide ongoing revenue through royalties and potential milestone payments. The firm expressed a positive outlook for Iqirvo's market authorization in Europe and the U.K., which would further contribute to Genfit's financial growth.
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