What happened
InflaRx (IFRX 4.11%) stock soared this week on news that one of the company's treatments for COVID-19 had received Emergency Use Authorization (EUA) from the Food and Drug Administration (FDA). The company's share price closed out the shortened trading week up 183.5%, according to data from S&P Global Market Intelligence.
InflaRx published a press release on April 4 announcing that its Gohibic drug had received EUA for the treatment of COVID patients within 48 hours of being put on mechanical ventilation. The EUA designation represents a big win for the clinical-stage biopharmaceutical company and has the potential to be a significant revenue generator in the near future.
Image source: Getty Images.
So what
InflaRx's Gohibic delivers a monoclonal anti-human antibody to treat patients suffering from extreme cases of COVID-19. The EUA designation from the FDA suggests that the regulatory agency believes the drug has lifesaving potential in cases in which patients have been put on ventilators and bodes well for the chance of the drug eventually receiving full approval.
NASDAQ: IFRX
Key Data Points
News of the EUA was followed by a bevy of price-target and ratings upgrades from analysts. Raymond James analyst Steven Seedhouse published a note increasing his one-year price target on the stock from $8 per share to $25 per share and maintaining a strong buy rating on the stock. Seedhouse estimates that between 40,000 and 50,000 patients will be candidates for Gohibic in 2024 and sees a gross price per patient of $25,000.
Guggenheim's Yatin Suneja was also bullish on the stock, upgrading his rating from neutral to buy and setting a one-year price target of $8 per share. Suneja expects that Gohibic will be priced above $20,000 per course and thinks that InflaRx looks well positioned for the remainder of the year.
Now what
Last year, InflaRx's core business generated 2.7 million euros in revenue. The company also recognized 20.1 million in other income in grant payments from the German government in connection with the development of Gohibic. The business incurred a net loss of 29.5 million for the year, but it appears that financial performance is on track to see a big improvement with the EUA designation for Gohibic.
