The current valuation of drug discovery firm ImmuPharma PLC (LON:IMM) is well below where it deserves to be, according to an analyst at Northland Capital.
Vadim Alexandre has the stock as a ‘buy’ and has high expectations for the company, setting a price target of 171p.
“You’ve got a potential blockbuster drug [in Lupuzor], this [current] valuation is way too low for that programme on its own, and that says nothing about the oncology programme [either],” Alexandre tells Proactive.
“The current valuation of the business is too steep a discount, in my opinion, and there’s no value for any other programmes in the business [other than Lupuzor].”
Alexandre expects a couple pieces of news to move the share price considerably higher in the coming months.
He hopes to hear about the last patient being entered into the Lupuzor Phase III trial before the end of this year, which should mean that the data read-out will happen at some point in late-2017.
“The read out of that data is key. That is the most important piece of news flow I think this business can expect in the near-term,” the analyst claims.
“That would, in my opinion, hopefully drive the share price.”