- HC Wainwright downgraded Humanigen Inc (NASDAQ:HGEN) to Neutral from Buy and removed the price target based on the removal of COVID-19 from lenzilumab projections and the lack of near-term catalysts beyond COVID-19 that could potentially drive the shares.
- The analyst looks to reassess valuation as the lenzilumab opportunities in graft vs. host disease, chronic myelomonocytic leukemia, and CAR-T prophylaxis can potentially be important drivers for the shares.
- Related: Humanigen’s Lenzilumab Disappoints In NIH-Backed COVID-19 Study.
- HC wainwright says that though the update was unexpected and discouraging, the endemic nature of COVID-19 means the demand for additional studies for variant-targeted treatments is likely to stay.
- “We expect the company to deemphasize its COVID-19 program and strategically realign its focus on company-sponsored and partner-sponsored programs,” the analyst added.
- If the COVID-19 program were to proceed, a much larger study would be required, most likely in someone else’s hands.
- The analyst notes that enrollment in the Phase 2/3 RATinG trial of patients at high and intermediate risk for acute GvHD is on track for this quarter. Also, initial data from a Phase 2/3 study of lenzilumab in CMML (PREACH-M) is anticipated in early 2023.
- Price Action: HGEN shares are down 79.8% at $0.60 during the market session on the last check Wednesday.
Contagious Opportunities: Norovirus Cases Are On The Rise, These Are The Stocks That May Be Impacted
Cases of norovirus, sometimes called the “winter vomiting disease,” are on the rise in multiple states throughout the U.S. The virus causes stomach pain, vomiting and diarrhea and has been linked to outbreaks at restaurants such as the one at a sushi restaurant in No
