SVB Leerink ups InflaRx PT to $67 from $42

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SVB Leerink raised its price target for InflaRx N.V. (NASDAQ:IFRX) to $67 from $42, citing a potentially larger orphan market for the company’s lead indication. The stock closed at $43.77 on April 9.

“We have been assuming that hidradenitis suppurativa (HS) was a very large orphan indication, with prevalence around the upper bound of FDA’s criteria for establishing orphan designation (200,000 patients in the U.S.), but multiple sources suggest that the condition may be much more prevalent,” writes analyst Joseph Schwartz.

HS is a long-term skin disease characterized by inflamed and swollen lumps, which are typically painful and break open releasing fluid or pus. The areas most commonly affected are the underarms, under the breasts and groin.

“Delays in diagnosis and misdiagnosis may render our previous estimates just the tip of the proverbial iceberg,” he added. “As is often the case in newly addressable indications, actual prevalence may creep significantly higher over time as disease awareness and diagnostic criteria develop.”

As a result, he believes a larger market opportunity may increase the potential upside for the stock following the upcoming SHINE dataset to be reported on a top line basis in the second quarter of 2019.

In raising InflaRx’s price target, Mr. Schwartz said, “our new market analysis suggests that the stock has much more room to run if data are positive.”

Stephen Kilmer