It has been a rough 2021 for Humanigen (HGEN) investors. Shares sit 62% into negative territory. That said, practically all of the losses came in early September, after the FDA rejected lenzilumab – the company’s intended treatment for hospitalized Covid-19 patients – citing the need for additional data before going any further.
Might the latest development boost Humanigen’s cause both with the regulatory body and investors alike?
On Tuesday, the company announced a late-breaking presentation at this year’s CHEST Annual Meeting, in the process reiterating recent analyses from its LIVE-AIR Phase 3 trial in COVID-19 patients. More to the point, the presentation included data which showed that lenzilumab is best suited for intervention in participants that are below the age of 85 years old and have Creactive protein (CRP) levels under 150 mg/L. When compared to standard treatment that consisted of remdesivir and steroids, the likelihood of survival without ventilation for patients under 85 increased 3-fold, while there was a 2-fold drop in the mortality rate.
H.C. Wainwright’s Joseph Pantginis has backed Humanigen through this year’s travails and says the latest development “reaffirms CRP as a biomarker for lenzilumab’s early intervention in COVID-19 patients.”
“We believe these results are an encouraging reaffirmation of lenzilumab’s MoA (mechanism of action), provide an intriguing means of patient screening, and represent another piece of strong evidence supporting lenzilumab’s capacity to treat a substantial population of COVID-19 patients early in disease progression,” the analyst said. “Further, these data should continue to push the discussion forward with the FDA following the agency’s request for additional data.”
Pantginis evidently still has high hopes for Humanigen, then; his $28 price target suggests the stock could generate share gains of a humongous 325% over the next 12 months. Unsurprisingly, the analyst’s Buy rating stays as is. (To watch Pantginis’ track record, click here)
While Pantginis’ colleagues are relatively more conservative, their takes are extremely bullish too; the $19.4 average price target still suggests shares will almost triple in value in the year ahead. Rating wise, the stock currently boasts a Moderate Buy consensus rating, based on 4 Buys vs. 1 Hold and Sell, each. (See HGEN stock analysis 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.
