Tuesday, Imunon (NASDAQ:IMNN) received a revised price target from H.C. Wainwright. The firm reduced the target to $12.00 from the previous $13.00 while maintaining a Buy rating on the stock. This adjustment came after Imunon reported its first-quarter earnings for 2024 and held a conference call on Monday.
The company had previously released interim data from the OVATION 2 study in September 2023. This study is evaluating the efficacy of IMNN-001 in combination with neoadjuvant chemotherapy (NACT) compared to NACT alone for patients with newly diagnosed advanced ovarian cancer.
The interim analysis was based on 70 events, with full enrollment reaching 110 patients. Although the analysis wasn't powered for statistical significance, results showed a median progression-free survival (PFS) of 14.95 months for the combination therapy compared to 11.76 months for NACT alone, indicating a 33% delay in disease progression.
The hazard ratio (HR) for PFS at the interim was 0.78, with the protocol HR being 0.75, suggesting that the combination therapy is on the verge of meeting the primary endpoint. This endpoint will be evaluated after a total of 80 events, which is anticipated to occur by mid-2024.
Notably, a subgroup of patients who received the combination of IMNN-001, NACT, and PARP inhibitors (PARPi) showed a significant benefit. These inhibitors are typically prescribed to patients with BRCA mutations and/or homologous recombination deficiency (HRD), which accounts for approximately 45% of ovarian cancer cases.
In this subgroup, the median PFS was 23.72 months compared to 15.67 months for those receiving NACT plus PARPi, marking an 8-month improvement and leading to a HR of 0.64.
In light of the interim findings, Imunon is planning to design a Phase 3 trial based on the OVATION 2 study outcomes. The company intends to stratify patients by HRD/BRCA status to better target the treatment's efficacy. The analyst reaffirmed the Buy rating but adjusted the price target to reflect the latest data from the study.
InvestingPro Insights
Following the revised price target from H.C. Wainwright, a closer look at Imunon's financial and market performance through InvestingPro metrics offers additional context for investors. With a market capitalization of $13.91 million and a negative price-to-earnings (P/E) ratio of -0.65 reflecting its current lack of profitability, the company presents a high-risk, high-reward scenario for potential investors. Despite the challenges, Imunon has shown a remarkable 179.27% price total return over the last three months, indicating significant investor enthusiasm and a potential turnaround story.
From the collection of InvestingPro Tips, two stand out as particularly relevant to the article's discussion of Imunon's recent activities. Firstly, the company holds more cash than debt on its balance sheet, which is a positive sign for its financial stability and could support its upcoming Phase 3 trial. Secondly, despite the lack of profitability over the last twelve months, the strong return over the last three months suggests that the market is responding favorably to the company's clinical developments and future prospects.
For investors intrigued by Imunon's potential and seeking to delve deeper into the company's performance and outlook, InvestingPro offers 13 additional tips that could guide investment decisions. To access these insights and more, consider subscribing to InvestingPro using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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