- Raymond James remains a Strong Buy on Inflarx NV (NASDAQ: IFRX) following 1Q22 earnings based on a promising outlook for vilobelimab in Pyoderma Gangrenosum (PG) and potentially other indications.
- The biotech macro backdrop has forced many companies to be prudent with cash runway and prioritize clinical programs.
- InflaRx is also focusing on a potential pivotal trial in PG, halting (for now) hidradenitis suppurativa (HS) and ANCA vasculitis programs.
- It is also discussing COVID data with regulators to see if Phase 3 data supports authorization.
- The decision extends the cash runway well into 2H 2024. The company closed the quarter with a cash balance of €99.3 million.
- The analysts removed risk-adjusted ANCA vasculitis revenues from its model, dropping PoS in HS to 5% and adding PG (40% PoS, peak risk-adjusted revenues of $313 million).
- They also lowered the operating expenses based on capital conservation from halting HS and ANCA development. Collectively, the changes move the price target to $7 from $15.
- Price Action: IFRX shares are trading at $1.46 during the market session on the last check Friday.
