On Monday, B.Riley adjusted its outlook on Agenus Inc . (NASDAQ:AGEN), reducing the biotechnology firm's price target to $5 from the previous $6, while still endorsing the stock with a Buy rating. The revision follows the company's fourth quarter and full-year 2023 earnings report, which detailed its strategy for seeking accelerated approval in the U.S. and European markets.
Agenus management highlighted the potential for their bot/bal therapy, pointing to its efficacy and safety profile, evidenced by its administration in over 900 patients for various indications.
The company's management expressed confidence in bot/bal's commercial prospects during their earnings call. They also reiterated their commitment to exploring strategic financial options, which could potentially generate between $100 million and $200 million in the near term. This could involve the monetization of non-core assets.
Additionally, Agenus is actively pursuing co-development and co-marketing partnerships for bot/bal and is currently in discussions with approximately five global biopharmaceutical companies.
The revised price target reflects updates to the firm's financial model, which are anticipated to be further refined following Agenus's planned 20:1 reverse stock split in early April 2024. The reverse split is expected to affect the company's stock structure and could influence future valuations.
Despite the lowered price target, B.Riley's stance on Agenus remains positive, suggesting continued confidence in the company's growth trajectory and product pipeline. The analyst's comments indicate that the potential for approval submissions and timelines for the second half of 2024, with approvals aimed for 2025, are key factors in maintaining the Buy rating.
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