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Monopar Therapeutics stock target lifted, buy rating on AstraZeneca deal

EditorNatashya Angelica
Published 11/11/2024, 12:52
MNPR
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On Monday (NASDAQ:MNDY), Monopar Therapeutics (NASDAQ:MNPR) saw its stock price target significantly increased by H.C. Wainwright from $6.00 to $22.00, while the firm reaffirmed a Buy rating on the stock. The revision follows Monopar's recent licensing agreement with AstraZeneca (NASDAQ:AZN) for an exclusive worldwide license to ALXN-1840, a drug candidate for Wilson's disease.

On October 24, Monopar announced the deal, which included an upfront payment of $4 million, approximately 10% equity in the form of stock, and potential future milestones and royalties. This agreement marks a pivotal development for Monopar, as it is expected to take on all global development, regulatory, and commercialization responsibilities for ALXN-1840.

The licensing agreement with AstraZeneca is seen as a transformative event for Monopar, potentially accelerating its transition from an early-stage clinical developer to a profitable commercial entity within the next 12 months.

H.C. Wainwright's analyst anticipates that ALXN-1840 could receive FDA approval for a more targeted indication, possibly without additional clinical studies or with a commitment to post-market trials.

If successful, Monopar could launch ALXN-1840 in the U.S. market as early as the first half of 2026, with projections of reaching peak sales of $272 million by 2033. The optimistic outlook on Monopar's prospects with ALXN-1840 underpins the substantial increase in the firm's price target.

In other recent news, Monopar Therapeutics has announced a public offering of common stock, with the terms yet to be finalized. The company has also secured an exclusive global license for the Phase 3 clinical trial drug ALXN-1840 for Wilson disease from Alexion (NASDAQ:ALXN), AstraZeneca Rare Disease.

Monopar reported no generated revenues for the second quarter of 2024 and a net loss of $0.10 per share. Analyst firms H.C. Wainwright and Jones Trading maintained a Buy rating for Monopar, with H.C. Wainwright raising the price target to $6.00.

The company has shown promising results from its Phase I imaging trial involving the MNPR-101-Zr agent, indicating potential efficacy in cancer imaging. A Phase I therapeutic trial for MNPR-101-Lu targeting patients with advanced solid cancers has also been initiated in Australia. Monopar announced a 5-for-1 reverse stock split and regained compliance with Nasdaq's minimum bid price requirement.

Monopar has expanded its partnership with NorthStar Medical (TASE:PMCN) Radioisotopes, securing a long-term contract for the supply of actinium-225, a key radioisotope used in cancer treatment. Lastly, CFO Kim R. Tsuchimoto has retired, with Karthik Radhakrishnan set to assume her roles. These are the recent developments at Monopar Therapeutics.

InvestingPro Insights

Monopar Therapeutics' recent licensing agreement with AstraZeneca has not only caught the attention of analysts but has also been reflected in the company's market performance. According to InvestingPro data, MNPR has seen a remarkable 206.91% price return over the past month and an even more impressive 663.8% return over the last three months. These figures align with the optimistic outlook presented in the article regarding the company's potential future growth.

Despite the positive news, InvestingPro Tips caution that MNPR suffers from weak gross profit margins and is not expected to be profitable this year. This information provides context to the company's current financial position as it embarks on the development of ALXN-1840. Additionally, the stock's high price volatility, as noted by InvestingPro, suggests that investors should be prepared for potential fluctuations as the company progresses towards its goals.

For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for MNPR, providing a deeper understanding of the company's financial health and market position.

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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