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JMP bullish on Engene stock as non-viral bladder cancer therapy gains traction

EditorEmilio Ghigini
Published 18/11/2024, 09:38
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On Monday, Engene Holdings Inc. (NASDAQ:ENGN) stock received a Market Outperform rating from JMP Securities, accompanied by a price target of $18.00. The firm's coverage initiation is based on the anticipation of increased utilization of therapeutics in the treatment of non-muscle invasive bladder cancer (NMIBC) prior to patients requiring cystectomy.

According to JMP Securities, demand for intravesically-instilled therapies is expected to rise, driven by advancements in treatment efficacy and preferences of physicians and patients. These factors are influenced by the capabilities of treatment sites and the speed and frequency of bladder installations. Engene Holdings' product, detailmogene, is highlighted for its several potential advantages in this growing market.

The analyst from JMP Securities pointed out that detailmogene offers a simple regimen, which includes one of the lowest dosing intervals and shortest instillation procedures. Additionally, the treatment has low site requirements, meaning that it poses a minimal burden on clinics, as it does not necessitate cold storage, biosafety measures, facilities decontamination, or urine bleaching.

Engene Holdings' detailmogene is also considered a de-risked compound. Early interim efficacy data suggests that its performance is on par with approved treatment options. Moreover, the non-viral gene therapy is expected to have a significantly lower cost of goods compared to other clinical and marketed intravesical gene therapies, which could position it favorably in the market.

In other recent news, enGene Holdings Inc. secured $60 million in a private placement sale of common shares. The proceeds will support the development of its lead product, detalimogene voraplasmid, which is currently in a pivotal study for high-risk NMIBC patients unresponsive to BCG treatment. The company recently appointed Joan Connolly as Chief Technology Officer (CTO) and plans to submit a Biologics License Application (BLA) in mid-2026.

Several analyst firms, including Leerink Partners, Oppenheimer, and Morgan Stanley (NYSE:MS), have maintained 'Outperform' ratings for enGene, with varying price targets. Preliminary results from the company's LEGEND study for a bladder cancer treatment, detalimogene, reported complete response rates over various timeframes. enGene also plans to amend the LEGEND protocol and start enrolling additional cohorts in late 2024.

Another therapy for bladder cancer, EG-70, is currently in clinical trials. Oppenheimer maintained its 'Outperform' rating for enGene, citing potential due to EG-70's non-viral gene therapy nature and convenience of use. Lastly, enGene's financial position was noted as robust following a $200 million private investment, with projected sales reaching approximately $530 million by 2031 after an expected product launch in 2027. These are some of the recent developments in the company.

InvestingPro Insights

Engene Holdings Inc. (NASDAQ:ENGN) presents an intriguing investment case, particularly in light of JMP Securities' recent Market Outperform rating. InvestingPro data provides additional context to this outlook. The company's market capitalization stands at $388.93 million, reflecting its position in the biotechnology sector.

Notably, Engene's stock has shown resilience in the medium term, with a 3-month price total return of 25.29%. This aligns with the positive sentiment expressed in the analyst's rating and could indicate growing market confidence in the company's potential, especially regarding its detailmogene product for non-muscle invasive bladder cancer treatment.

InvestingPro Tips highlight that Engene has high revenue growth, which could be a key factor in its future success as it seeks to capitalize on the anticipated increase in demand for intravesically-instilled therapies. Additionally, analysts have recently revised their earnings expectations upwards for the company, potentially reflecting optimism about detailmogene's market prospects.

These insights are just a sample of the valuable information available on InvestingPro. Subscribers can access 10 additional tips for Engene Holdings, providing a more comprehensive analysis to inform investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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