In our previous article on Immunic (IMUX), we highlighted some of the important insights from the interview hosted by TipRanks with the company’s President and CEO Dr. Daniel Vitt. The CEO shed light on how Immunic’s “risk profile got very attractive over time” and why this could possibly be the right opportunity to consider investing in the stock.
Until now, we have focused on why Immunic was formed, some of the key milestones, and Immunic’s positioning versus some of the well-established pharma companies.
In this article, we will look at some important aspects that could drive Immunic stock’s trajectory. Dr. Vitt discussed some notable catalysts and risks that could impact both the company and the stock’s performance. Let’s look at each of them in brief.
Significant Catalysts for Immunic Stock
- Strong Pipeline of Drugs – Immunic is striving to develop an oral, small-molecule drug for treating chronic diseases such as Multiple Sclerosis (MS) and Celiac Disease. The company’s lead candidate, Vidofludimus Calcium, has even shown significant statistical relevance in clinical trials.
- Addition of Jason Tardio as COO and President – On July 12, 2024, Jason Tardio, a pharma sector veteran, joined Immunic as COO and President. Dr. Vitt said that Jason brings along meaningful experience in the commercialization of successful MS drugs for major pharma companies such as Novartis (NVS) and Biogen (BIIB). Dr. Vitt is optimistic that Jason’s strong background will help Immunic in preparing for the potential launch of Vidofludimus Calcium (IMU-838) as an oral drug for treating MS. Also, Jason could help boost Immunic’s chances of securing commercial partnerships for the drugs.
- Phase 2 CALLIPER Trial Readout – Dr. Vitt and the whole Immunic team eagerly await the readout of the Phase 2 CALLIPER trial in Progressive MS in April 2025. This will then be followed by the Phase 3 CALLIPER trial and its expected reading in 2026.
- Commercialization Stage Transformative Event – Once all clinical trials display the required statistical relevance for treating the targeted diseases, Immunic will be able to apply for the U.S. FDA’s (Food and Drug Administration) approval for drug commercialization. Dr. Vitt is highly encouraged by the indications presented so far in both the ENSURE trials for MS and CALLIPER trials for Celiac Disease. Immunic expects the readouts from the final trials in 2026, which if successful, will lead to a transformational event for both the company and IMUX stock.
Potential Risks for Immunic Stock
From a larger perspective, we can break down Immunic’s risks into three main factors:
- Macro Risks – Dr. Vitt says that although the healthcare sector is believed to be a defensive play in times of macro uncertainty for investors, economic factors do impact a company’s internal functioning. For instance, a persistent high interest rate environment impacts a pharma company’s ability to invest in research and development (R&D) activities. Once interest rates start easing, drug companies can enhance their R&D expenses and proceed with their drug development initiatives.
- Funding Risk – Access to adequate funding plays an important role for any clinical-stage pharmaceutical company. Interestingly, Immunic raised new funding of up to $240 million through a three-tranche private placement offering of its common shares (or pre-funded warrants) in January this year. This ensures enough liquidity to conduct its clinical trials and support its operating expenses and capital expenditures. Dr. Vitt noted that Immunic need not raise more capital at least until the readout of the Phase 2 CALLIPER Study, expected in April 2025.
- Delisting Risk – A small cap or penny stock often carries the risk of receiving delisting notifications from the stock exchange on which it is listed. This is mostly because the stock does not meet the minimum bid price requirement. When asked about any risk related to delisting, Dr. Vitt replied that there is absolutely no delisting risk associated with IMUX stock as of now or going forward.
Is Immunic a Good Stock to Buy?
On TipRanks, IMUX stock has a Moderate Buy consensus rating based on two Buys and one Hold recommendation. The average Immunic Therapeutics price target of $13 implies 760.9% upside potential from current levels. Meanwhile, IMUX shares have lost 1.3% in the past six months.
This article was written in partnership with Immunic. TipRanks may be compensated for its publication.
