Strong buy - 100 target price - Navid Malik, analyst at The Life Sciences Division15 Feb 2021 09:57
Please find below a note issued this morning from Navid Malik, analyst at The Life Sciences Division
Summary:
“ImmuPharma recently announced an update on the FDA meeting with Avion, ImmuPharma’s
partner for Lupuzor™, on 4 December 2020 (Type ‘A’ meeting request). Based on the positive
guidance and feedback from FDA, there is now a clear regulatory pathway to commence the
Phase III trial in H2 2021, fully funded by Avion. As part of this feedback, Avion and ImmuPharma
will develop and validate a bioanalytical assay in order to confirm the unique pharmacokinetic
profile of Lupuzor™. This will be presented at the final guidance meeting between Avion and the
FDA in Q2 as well as confirming the previously submitted data on study design, clinical end points
and the pathway to approval. ImmuPharma is also having a new batch of Lupuzor™
manufactured ready for use in the Phase III clinical trial. Given the strengthened balance sheet
position following the £6.5m placing in September 2020, a cash runway to end 2023, a fully funded
Phase III trial (by Avion with a US$25m investment) in an attractive market, and poorly met
medical need, we believe the shares are oversold and reiterate our BUY rating and TP of 100p.”