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ImmuPharma’s Lupuzor could be US blockbuster, says Life Sciences Division

Investment bank Life Sciences Division upgraded its share price target to 100p from 76p on the back of the recent deal with US speciality drugs group Avion Pharmaceuticals

ImmuPharma PLC - ImmuPharma’s Lupuzor could be US blockbuster, says Life Sciences Division

ImmuPharma PLC’s (LON:IMM) lupus candidate Lupuzor could become a US blockbuster by generating over US$1bn revenues per year, according to Life Sciences Division.

The investment bank raised its target for the AIM-listed drug developer’s share price to 100p from 76p on the back of the recent deal with US speciality drugs group Avion Pharmaceuticals.

READ: ImmuPharma shoots up 300% after it inks US licensing deal for flagship drug Lupuzor

Avion will fund a new phase III trial, while Immupharma will also receive milestone payments and an agreed 17% royalty on sales.

ImmuPharma has the potential to rack in annual royalties of up to US$170mln from the deal, according to the Life Sciences Division analysts.

This deal is only exclusive to the US market, meaning ImmuPharma can look for other distribution partners in other geographies, such as Europe, where there is no need for a new trial given Avion’s funding commitment.

Further agreements will allow ImmuPharma to multiply income from Lupuzor with other royalties and milestone payments.

According to Life Sciences Division, Lupuzor may get second or third place in the US market if rival AstraZeneca PLC’s (LON:AZN) Anifrolumab gets a US licensing deal.

“Lupuzor with a 71.1% response rate in the anti-ds DNA auto antibody-positive patients, could also eventually be the product with the best overall response rate and safety profile in the market,” LSD analysts added.

Shares in ImmuPharma were trading 3% higher on Friday afternoon at the 21.6p.

Quick facts: ImmuPharma PLC

Price: 14.4 GBX

AIM:IMM
Market: AIM
Market Cap: £24.1 m
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ImmuPharma: Analyst discusses 'impressive and potentially blockbuster' ...

The Life Sciences Division's Navid Malik gives his view on the recent recent deal ImmuPharma PLC (LON:IMM) struck with US speciality drugs group Avion Pharmaceuticals. Malik reckons its lupus candidate Lupuzor could become a 'US blockbuster' by generating over US$1bn revenues per year.

on 16/12/19

2 min read