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Humanigen: Shares Could More Than Double From Here, Says 5-Star Analyst
Corona

Humanigen: Shares Could More Than Double From Here, Says 5-Star Analyst

Unfortunately, the battle against Covid-19 is an ongoing concern, and companies are still lining up to find solutions to fend off the virus. One such name with a potential treatment is small cap biotech Humanigen (HGEN).

Last month, the company announced it has applied to the FDA for emergency use authorization (EUA) for its prospective treatment for hospitalized COVID-19 patients lenzilumab. The drug met its primary endpoint in the Phase 3 LIVE-AIR trial when it showed a 1.54-fold relative improvement in the likelihood of survival without ventilation (SWOV).

Now Humanigen has disclosed that the NIH – HGEN’s collaborator – has forwarded the ACTIV-5/BET-B study of lenzilumab to a Phase 2/3 trial. It has also altered the primary endpoint to include survival without ventilation for treating Covid-19 patients – based on the same successful decision made in the Phase 3 LIVE-AIR study and to better represent a continuously changing pandemic landscape.

Additionally, the modified ACTIV-5/BET-B study now plans on recruiting 400 patients overall, with up to 60 U.S. sites taking part in the study. Roughly half of the 400 patients are already enrolled.

With the new study, Humingen believes that the company will have the adequate size and statistical strength needed for a BLA submission to the FDA.

It’s a good decision, says H.C. Wainwright’s Joseph Pantginis.

“During LIVE-AIR’s advancement in the clinic it was our opinion that a strategic pivot to survival without ventilation (SWOV) as the study’s primary endpoint better reflected a dynamic clinical therapeutic landscape and increased the likelihood of capturing and validating lenzilumab’s potential in COVID-19 patients,” the 5-star analyst said. “We are similarly encouraged by these announced protocol amendments and share the opinion with Humanigen management that this trial is now even better situated to provide the clinical relevance, sufficient patient participation, and statistical power that is traditionally necessary for a BLA submission to the FDA.”

Pantginis is certainly bullish on HGEN’s prospects. The analyst’s Buy rating is backed by a $36 price target, suggesting upside of ~126% from current levels. (To watch Pantginis’ track record, click here)

Pantginis’ colleagues are just as confident. In fact, all 5 recent reviews are to Buy, naturally culminating in a Strong Buy consensus rating. Moreover, the average price target is almost as optimistic as the H.C. Wainwright analyst’s; at $34.20, the figure implies shares will surge ~114% in the year ahead. (See HGEN stock analysis on TipRanks)

To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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