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.
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.
“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.