Friday - Benchmark has adjusted its price target on shares of Genelux Corp. (NASDAQ:GNLX), lowering it to $25 from the previous $30, while retaining a Speculative Buy rating on the stock. The revision reflects new share count assumptions following the company's recent equity offering.
Genelux Corp. recently concluded the first quarter of 2024 with $19.6 million in cash and short-term investments. The biopharmaceutical company then bolstered its balance sheet by adding $27.5 million through an equity offering of 6.875 million shares, announced on May 23, 2024. This offering also included warrants exercisable at $5.25 per share.
According to company management, the current cash reserves are projected to fund operations into the first quarter of 2026.
The ongoing Phase 3 OnPrime trial is a significant focus for Genelux, as it progresses at 22 sites with a target to enroll 186 patients. The trial is designed to assess Olvi-Vec, in combination with a platinum-based regimen, for treating Platinum-Resistant/Refractory Ovarian Cancer (PRROC). The company expects to release topline data from the trial in the second half of 2025.
In addition to the OnPrime trial, Genelux has initiated a Phase 1b/2 trial in China for recurrent Small Cell Lung Cancer (SCLC), which began in the third quarter of 2023. Interim data from the Phase 1b segment of the trial is anticipated by the end of 2024. Furthermore, the launch of a Phase 2 open-label study in Non-Small Cell Lung Cancer (NSCLC) is expected to take place in the second quarter of 2024.
InvestingPro Insights
Genelux Corp. (NASDAQ:GNLX) appears to be navigating through a challenging period, as reflected in the recent adjustments to its price target. To provide a clearer picture of the company’s financial health and market position, here are some key metrics and insights from InvestingPro.
InvestingPro Data indicates a market capitalization of $88.61 million USD, which positions Genelux as a smaller player in the biopharmaceutical landscape. The company's P/E Ratio stands at -3.64, suggesting that investors are currently valuing the company despite its lack of profitability in the last twelve months. Moreover, with a Price / Book ratio of 5.94 as of Q1 2024, the stock is trading at a higher valuation multiple relative to its book value.
An InvestingPro Tip points out that Genelux holds more cash than debt on its balance sheet, which aligns with the company's recent equity offering that has bolstered its cash reserves. This is a positive sign for investors, as it indicates a degree of financial stability and the ability to fund operations into the first quarter of 2026 without additional financing.
However, another InvestingPro Tip highlights that analysts anticipate a sales decline in the current year, which could be a concern for investors looking at the company's growth prospects. Additionally, the same analysts do not expect the company to be profitable this year.
For readers interested in a more comprehensive analysis, there are additional InvestingPro Tips available for Genelux Corp. at https://www.investing.com/pro/GNLX. These tips could provide further insights into the company's performance and market potential. To access these tips and more in-depth data, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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