InflaRx’s Strategic Shift to INF904: A Promising Focus Amidst Early-Stage Uncertainty

In a report released today, Ryan Deschner from Raymond James maintained a Buy rating on InflaRx (IFRX – Research Report), with a price target of $2.00.

Ryan Deschner’s rating is based on a strategic shift in InflaRx’s focus towards the development of INF904 for conditions such as hidradenitis suppurativa (HS) and chronic spontaneous urticaria (CSU). Despite the setback with vilobelimab in pyoderma gangrenosum (PG), which led to the discontinuation of its development, the company is redirecting its resources to INF904, which is seen as a promising candidate. The upcoming Phase 2a readout for INF904 is anticipated to be a pivotal moment for InflaRx’s development trajectory.
Deschner acknowledges the early stage of the INF904 programs, which introduces a degree of uncertainty, but he maintains a positive outlook on their potential. The company’s financial position, with a cash runway extending into 2027, provides a buffer to support the ongoing development of INF904. This financial stability, coupled with the strategic focus on promising therapeutic areas, underpins Deschner’s Buy rating, despite the reduced price target reflecting the inherent risks of early-stage clinical trials.

In another report released yesterday, Guggenheim also reiterated a Buy rating on the stock with a $10.00 price target.