So many stocks have taken a beating recently, leaving plenty of analysts’ predictions for the coming year looking very bullish indeed. However, there are possibly only a select few – if any – more optimistic than H.C. Wainwright’s Joseph Pantginis outlook for Humanigen (HGEN) stock.
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It’s true this name has been shredded to pieces over the past 12 months, with shares now at an 87% discount compared to a year ago. Still, backing up his Buy rating, the analyst’s $28 price target suggests the stock will climb by 941%. (To watch Pantginis’ track record, click here)
So, what is behind the outlandish forecast? Well, it is generally based on the potential of lenzilumab – the company’s drug candidate to treat hospitalized Covid-19 patients.
The therapy is going through the testing process, currently in the now fully enrolled Phase 2/3 ACTIV-5/BET-B trial, which following the FDA’s September rejection, the company hopes will provide the additional data necessary to support an amended EUA submission in the near future.
Pantginis’ latest endorsement is based on a peer-reviewed article published in the Journal of Medical Economics which looked at the “clinical and health economic benefits” of lenzilumab.
The piece showed that compared to SoC alone, all specified clinical outcomes improved in every patient after being given lenzilumab plus standard of care (SoC, remdesivir).
But importantly, in patients receiving remdesivir with baseline C-Reactive Protein (CRP) levels <150 mg/L and aged less than 85 years – which is the primary analysis population in the ACTIV-5/BET-B study – lenzilumab plus SoC was shown to have estimated cost savings of $13,190 per patient. Based on an assumed price of $10,000 for lenzilumab in this group, this represents net savings of $3,190.
Unsurprisingly, notes Pantginis, this could be great news for Humanigen.
“While developing novel and effective therapies that can compliment vaccines in a variant-agnostic manner remains the goal, we believe positive health economic data, such as these, provide additional evidence of the molecule’s differentiated profile,” the analyst said. “As we await additional visibility from the fully enrolled ACTIV-5/BET-B study, we are encouraged by these results and believe it helps further bolster the case for lenzilumab to quickly move through regulatory pathways and eventually be included in SoC regimens in the clinic.”
Turning now to the rest of the Street, where based on 3 additional Buys and 1 Hold and Sell, each, the stock has a Moderate Buy consensus rating. Pantginis’ target might seem out of reach, but it’s not as if his colleagues are shy about HGEN’s prospects either; at $20, the average target suggests one-year gains of “only” 643%. (See Humanigen stock forecast on TipRanks)
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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.
