On Tuesday, Invivyd Inc. (NASDAQ:IVVD) received an upgrade in its stock rating by Morgan Stanley from Equalweight to Overweight, alongside a substantial increase in the price target to $10.00 from the previous $4.00.
This adjustment comes in response to the U.S. Food and Drug Administration (FDA) granting emergency use authorization for Pemgarda, Invivyd's monoclonal antibody (mAb) designed for the pre-exposure prophylaxis of COVID-19.
The FDA's decision is seen as a pivotal moment for Invivyd, as it not only allows the company to launch its first mAb product but also alleviates the uncertainty that had been surrounding the stock, known as the EUA overhang. With this regulatory hurdle cleared, the focus for Invivyd now shifts towards the commercial opportunities that lie ahead.
The optimism from Morgan Stanley is further bolstered by the potential of Invivyd's proprietary platform, which is expected to provide additional data to support the company's approach. The emergency use authorization of Pemgarda is considered a significant derisking event for Invivyd, enhancing the company's prospects and justifying the improved stock rating and price target.
The upgraded rating and revised price target reflect a more positive outlook for Invivyd's shares as the company embarks on a new chapter with its first mAb product entering the market. The stock market's reaction to these developments will be closely monitored in the coming days and weeks.
InvestingPro Insights
Following the recent FDA approval of Invivyd Inc.'s (NASDAQ:IVVD) monoclonal antibody, Pemgarda, the company's financial metrics and market performance have become a focal point for investors. According to InvestingPro data, Invivyd's market capitalization stands at $383.87 million USD, and despite the company's significant year-to-date price total return of 146.56%, the stock has experienced a 25.58% decline over the last month. This volatility is reflected in the company's negative price-to-earnings (P/E) ratio of -2.42, which suggests that Invivyd is not profitable as of the last twelve months ending Q3 2023.
InvestingPro Tips indicate that Invivyd holds more cash than debt on its balance sheet, which could provide some financial flexibility in the near term. However, the company is also quickly burning through cash and suffers from weak gross profit margins. Analysts, as noted by InvestingPro, do not anticipate the company will be profitable this year, which aligns with the negative P/E ratio. For investors seeking a deeper analysis, there are an additional 9 InvestingPro Tips available for Invivyd, offering a comprehensive understanding of the company's financial health and market potential. Utilizing the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable insights.
As Invivyd navigates the commercialization of Pemgarda, these financial metrics and expert tips will be crucial for investors to monitor the company's progress and make informed decisions.
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