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On Monday, Piper Sandler adjusted its price target for ImmunityBio Inc (NASDAQ:IBRX), increasing it to $5.00 from the previous $4.00, while maintaining a Neutral rating on the stock. The revision follows ImmunityBio’s fiscal year 2023 earnings report and a comprehensive update on its product pipeline.
ImmunityBio, a biotechnology firm, is awaiting a potential approval in April 2024 for its N-803+BCG combination treatment for BCG unresponsive non-muscle invasive bladder cancer (NMIBC) carcinoma in situ (CIS). This comes after the company received a Complete Response Letter (CRL) in May 2023 and subsequently resubmitted its Biologics License Application (BLA).
The company’s management has expressed confidence in the progress of N-803+BCG, indicating that all aspects of the development and preparation for launch are on track. ImmunityBio has prepared for the potential market introduction of the treatment by ensuring an adequate drug supply and establishing a salesforce of approximately 40 individuals, alongside a specialty distribution network.
Piper Sandler’s valuation of ImmunityBio now focuses primarily on the prospects of N-803 in NMIBC and non-small cell lung cancer (NSCLC). The firm also considered the impact of royalty-backed financing on the company’s valuation.
Despite the increased price target, Piper Sandler remains cautious, adopting a wait-and-see approach for the upcoming Prescription Drug User Fee Act (PDUFA) date and any further financing needs that may arise for ImmunityBio.
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