Piper Sandler has maintained a positive outlook on Immunic Inc. (NASDAQ: NASDAQ:IMUX), reiterating an Overweight rating with a price target of $28.00. The firm's stance is based
on the potential impact of the company's drug vidofludimus calcium, particularly if the upcoming CALLIPER PMS study, expected in April 2025, yields positive results.
The analyst from Piper Sandler highlighted that Immunic is undervalued with a market capitalization of approximately $137 million, which includes $79.7 million in cash.
The expectation is that successful data from the CALLIPER trial could significantly elevate the drug's status in the treatment of multiple sclerosis (MS). Vidofludimus calcium is unique in its dual mechanism of action, combining Nurr1 activation with DHODH inhibition, which could offer both anti-inflammatory and neuroprotective benefits.
Furthermore, the positive outcome of the CALLIPER study could establish vidofludimus calcium as the first MS therapy approved for all three subtypes of the disease: relapsing MS (RMS), secondary progressive MS (SPMS), and primary progressive MS (PMS), with the added advantage of reducing disability worsening.
Immunic reported a Q1 2024 loss of $29.6 million, a significant 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.
EF Hutton, Leerink Partners, and B.Riley have all initiated coverage on Immunic with positive ratings, highlighting the potential of the company's lead drug candidate, Vidofludimus Calcium, in the treatment of Multiple Sclerosis. In addition, Piper Sandler maintained an optimistic outlook on Immunic, emphasizing the potential of the company's MS program.
InvestingPro Insights
As Piper Sandler maintains a positive outlook on Immunic Inc. (NASDAQ:IMUX), highlighting the potential of vidofludimus calcium, InvestingPro data provides additional context to the company’s financial health and stock performance. Immunic holds a market capitalization of approximately $136.92 million, reflecting Piper Sandler’s valuation. Despite not being profitable over the last twelve months, as indicated by a negative P/E ratio of -1.16, the company has experienced significant stock returns with an 8.57% increase over the last week and a 15.15% increase over the last month.
An InvestingPro Tip notes that Immunic holds more cash than debt on its balance sheet, providing financial flexibility as it navigates the critical period leading up to the CALLIPER PMS study results. However, analysts are mindful of the company's cash burn rate, which is an important consideration for investors. Additionally, while the company does not pay a dividend, this is not uncommon for biotech firms focused on reinvestment for growth and research development.
For readers interested in deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/IMUX, which can offer more insights into Immunic's stock volatility and gross profit margins, among other metrics.
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