Analyst Thomas Smith from Leerink Partners maintained a Hold rating on Immunic (IMUX – Research Report) and keeping the price target at $5.00.
Thomas Smith has given his Hold rating due to a combination of factors surrounding Immunic’s present situation and future prospects. One of the main contributing elements is the ongoing clinical trials of Immunic’s primary drug candidate, vidofludimus calcium (Vido), which is in development for multiple sclerosis. While the company has shown promising interim results, particularly with biomarkers indicating potential neurodegeneration reduction, the definitive outcomes of the Phase 2 CALLIPER study are not expected until April 2025, with subsequent Phase 3 results anticipated in the second and second half of 2026. This timeline implies a wait-and-see period before any significant value inflection could occur, justifying a cautious stance at this time.
Furthermore, while Immunic’s financials for the first quarter of 2024 reveal a net loss, they have a cash reserve deemed sufficient to fund operations into the third quarter of 2025. This provides the company with a runway to continue its research, but it also suggests a limited financial cushion without clear near-term revenue-generating milestones. The lack of immediate catalysts and the need for further data to substantiate the drug’s efficacy and safety profiles have likely led Smith to maintain a neutral position on the stock, reflected in the Hold rating.
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Immunic (IMUX) Company Description:
Immunic, Inc. engages in developing a pipeline of selective oral immunology therapies aimed at treating chronic inflammatory and autoimmune diseases. It focuses on ulcerative colitis, Crohn’s disease, relapsing-remitting multiple sclerosis, and psoriasis. Its products include IMU-838, IMU-935, and IMU-856. The company is headquartered in San Diego, CA.
