On Wednesday, H.C. Wainwright adjusted its outlook on Regenxbio Inc. (NASDAQ:RGNX) shares, increasing the price target to $38.00 from the previous $36.00, while reaffirming a Buy rating on the stock.
The adjustment follows the company's first-quarter financial report released last week, which showed total revenue of $15.6 million and a net loss of $63.3 million, or ($1.38) per share. This loss was notably lower than the estimated $70.7 million.
Regenxbio's management has indicated that the Biologics License Application (BLA) for RGX-121, aimed at treating mucopolysaccharidosis type II (MPS II), is anticipated to be filed in 2024 under the accelerated approval pathway.
The CAMPSIITE trial's pivotal phase, which is central to this application, successfully met its primary endpoint, with RGX-121 treatment leading to a significant reduction in cerebrospinal fluid levels of D2S6 at 16 weeks.
The successful trial outcomes suggest that Regenxbio could be on course to receive a Priority Review Voucher upon potential approval of RGX-121.
Such a voucher is currently valued at approximately $100 million in the market. H.C. Wainwright's report further notes the firm's estimated market value at $1.91 billion.
With 50.7 million shares outstanding at the end of the first quarter of 2025, the analyst firm calculates a per-share value of approximately $38, supporting their decision to maintain a Buy rating and raise the 12-month price target.
InvestingPro Insights
Following H.C. Wainwright's updated outlook on Regenxbio Inc. (NASDAQ:RGNX), real-time data from InvestingPro provides additional context to the company's financial health and market performance. With a market capitalization of approximately $778.24 million, Regenxbio's valuation reflects investor sentiment and market conditions. The company's Price to Book ratio, as of the last twelve months leading up to Q1 2024, stands at 1.99, suggesting that the stock may be reasonably valued in relation to its assets. Despite challenging gross profit margins, indicated by a -206.11% figure for the same period, Regenxbio's liquid assets exceed its short-term obligations, pointing to a stable liquidity position.
Two key InvestingPro Tips highlight the company's current financial situation: Regenxbio holds more cash than debt on its balance sheet, providing some financial flexibility. However, it's important to note that the company has not been profitable over the last twelve months and is quickly burning through cash, which could raise concerns about its long-term sustainability without additional revenue streams or financing.
For investors seeking a deeper dive into Regenxbio's financials and market potential, InvestingPro offers additional tips that can provide further insights. With the use of coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a comprehensive suite of analytical tools and data. There are 3 additional tips available on InvestingPro for Regenxbio, which could be particularly useful for those considering an investment in the biotechnology sector.
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