Investment bank Life Sciences Division upgraded its share price target to 100p from 76p6 Dec 2019 16:17
ImmuPharma’s Lupuzor could be US blockbuster, says Life Sciences Division
2019-12-06 15:16:00
Investment bank Life Sciences Division upgraded its share price target to 100p from 76p on the back of the recent deal with US speciality drugs group Avion Pharmaceuticals
ImmuPharma PLC - ImmuPharma s Lupuzor could be US blockbuster, says Life Sciences Division
ImmuPharma PLC’s (LON:IMM) lupus candidate Lupuzor could become a US blockbuster by generating over US$1bn revenues per year, according to Life Sciences Division.
The investment bank raised its target for the AIM-listed drug developer’s share price to 100p from 76p on the back of the recent deal with US speciality drugs group Avion Pharmaceuticals.
READ: ImmuPharma shoots up 300% after it inks US licensing deal for flagship drug Lupuzor
Avion will fund a new phase III trial, while Immupharma will also receive milestone payments and an agreed 17% royalty on sales.
ImmuPharma has the potential to rack in annual royalties of up to US$170mln from the deal, according to the Life Sciences Division analysts.
This deal is only exclusive to the US market, meaning ImmuPharma can look for other distribution partners in other geographies, such as Europe, where there is no need for a new trial given Avion’s funding commitment.
Further agreements will allow ImmuPharma to multiply income from Lupuzor with other royalties and milestone payments.
According to Life Sciences Division, Lupuzor may get second or third place in the US market if rival AstraZeneca PLC’s (LON:AZN) Anifrolumab gets a US licensing deal.
“Lupuzor with a 71.1% response rate in the anti-ds DNA auto antibody-positive patients, could also eventually be the product with the best overall response rate and safety profile in the market,” LSD analysts added.
Shares in ImmuPharma were trading 3% higher on Friday afternoon at the 21.6p.
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