It has been a rough 12 months for Humanigen (HGEN), with shares down by 80%. Investors will be hoping 2022 will provide more joy; the company’s prospective Covid-19 treatment could go some way to changing sentiment around this beaten down name.
On Wednesday, Humanigen announced it had reached its enrollment target in the Phase 2/3 ACTIV-5/BET-B trial assessing Covid-19 treatment lenzilumab in COVID-19 patients.
There are now more than 400 patients in the primary analysis population – patients with a baseline C-reactive protein (“CRP”) below 150 mg/L, under the age of 85 and which do not need mechanical ventilation at the time of enrollment. The study’s primary end point is the incidence of invasive mechanical ventilation or death through day 29. Top-line data from the study is anticipated to get a readout late in the first quarter or early in Q2.
“In our opinion,” said H.C. Wainwright’s Joseph Pantginis, “These data could go a long way to help support lenzilumab’s ongoing regulatory efforts with the FDA/MHRA.”
Recall, back in September, the FDA rejected lenzilumab, citing the need for additional data before moving forward. Positive results from the study might help satisfy the FDA’s needs and could provide the data necessary to support an amended EUA submission.
As new SARS-CoV-2 variants come to the fore, and the virus becomes “increasingly endemic,” Pantginis believes the demand for “vaccine alternatives and variant agnostic therapies,” such as lenzilumab, should continue to grow.
The analyst also thinks the trial is structured correctly. “We believe the identification of patient cohorts with a predicted treatment benefit and adjusting the primary endpoint to include SWOV, better reflect a dynamic clinical landscape and increased the likelihood capturing lenzilumab’s potential in COVID-19 patients,” Pantginis explained.
The shares might have taken an almighty beating, but this analyst is of an extremely bullish persuasion; backing his Buy rating is a price target of $28, which suggests the stock will soar by no less than 780% over the next 12 months. (To watch Pantginis’s track record, click here)
So, that’s H.C. Wainwright’s view, let’s turn our attention now to rest of the Street: 4 Buys, 1 Hold and 1 Sell coalesce into a Moderate Buy rating. Meanwhile, the average price target stands at $20 and implies ~529% upside from the current levels. (See HGEN stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
