Immunic (IMUX) reported better-than-expected earnings for the third quarter of Fiscal 2024 on November 7. Diluted loss narrowed to $0.24 per share compared to the prior-year quarter, and beat the consensus of $0.22 per share. IMUX shares are up about 4% in pre-market trading as of the time of writing.
Furthermore, management painted an elaborate picture of how the financials are shaping up for this pre-revenue company and what we must expect in the upcoming quarters.
Immunic is a clinical-stage biotechnology company that is focused on developing small-molecule oral therapies for treating chronic inflammatory and autoimmune diseases. Its lead product candidate Vidofludimus Calcium is being tested for treating Multiple Sclerosis (MS) and its forms, including Relapsing MS (RMS) and Progressive MS (PMS). To date, Vidofludimus Calcium has shown therapeutic efficacy and tolerability profile in the ongoing clinical trials.
Let’s take a look at some of the important points from Immunic’s Q3 results and corporate update.
- A Little About the Financial Performance – Immunic ended the September quarter with cash and cash equivalents of $59.1 million. The company noted that it would be able to fund the operations with this cash balance up to Q3 FY25.
- Positive Outcome of Interim Analysis of ENSURE Trials – An unblinded Independent Data Monitoring Committee (IDMC) conducted an interim, non-binding futility analysis of the Twin Phase ENSURE trials. The IDMC has recommended that the trials are not futile and should continue as planned, which is a very big positive for Immunic as it also means there is no need for increasing the sample size.
- Upcoming Milestones/Catalysts for Immunic Stock – Following the positive update from the interim futility analysis, Immunic expects to finish ENSURE-1 in the second quarter of 2026 and ENSURE-2 in the second half of 2026. Additionally, the most awaited crucial top-line data from the ongoing Phase 2 CALLIPER trial is expected in April 2025. To date, all preliminary readings have shown that Vidofludimus Calcium is effective in slowing disease progression in PMS.
- IMU-856 for Celiac Disease – IMU-856 is designed to target Sirtuin 6 (SIRT6), a protein responsible for restoring intestinal barrier function and regenerating bowel epithelium in patients suffering from celiac disease. The drug’s Phase 1b clinical trial showed positive effects over placebo. During Q3, Immunic prepared for Phase 2 clinical trials of IMU-856, which is dependent on acquiring the required financing and licensing or partnering arrangements.
Overall, Immunic’s various clinical trials are showing very promising signs of developing a novel drug for the treatment of MS and Celiac disease. The company even strengthened its finances in January 2024 through a three-tranche private placement offering of its common shares (or pre-funded warrants) of up to $240 million, with participation from existing and new investors.
What Is the Prediction for Immunic?
Analysts are growing increasingly bullish on Immunic’s stock trajectory. In a matter of months, the consensus view on Immunic stock has moved from being a “Moderate Buy” to a “Strong Buy.”
Following Immunic’s announcement of the positive outcome from the interim futility analysis of the Phase 3 ENSURE program, research firm Piper Sandler revisited their view on the stock.
Analyst Yasmeen Rahimi assigned a Buy rating and a Street-High price target of $28 (2272.9% upside potential) on IMUX stock. Rahimi’s bullish stance stems from the positive developments of Vidofludimus Calcium so far, and eagerly awaits the readout of the CALLIPER trial next year. The analyst also believes Immunic is undervalued considering its healthy cash balance.
Is IMUX a Good Stock to Buy?
With five unanimous Buy ratings, Immunic stock commands a Strong Buy consensus rating. Also, the average Immunic price target of $13.80 implies 1069.5% upside potential from current levels. Year-to-date, IMUX shares have lost 21.3%.
This article was written in partnership with Immunic. TipRanks may be compensated for its publication.
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