ImmuPharma Plc (LSE:IMM) has been the talk of the town in the biopharma industry in the past few days. The first news that took the industry by storm was the breakthrough in developing a new lupus treatment. Second is the progression into a key phase 2/3 adaptive clinical trial alongside its US partner Avion Pharmaceuticals.
While this news has kept the industry stirring, investors have not shown much excitement towards the news. Let’s explore the future prospects of the ImmuPharma share price.
Key Points
- ImmuPharma is on the cusp of a major breakthrough in the development of new lupus treatment.
- The company’s CEO is excited about the ongoing discussions for more commercial partnerships and the potential for major breakthroughs in the future.
- The ImmuPharma share price has been on its recovery path since the start of the year.
What does ImmuPharma do?
ImmuPharma PLC is an evolving speciality biopharmaceutical company. It develops peptide bio-drugs in speciality therapeutic areas. Its portfolio includes peptide therapeutics for autoimmune diseases and anti-infectives.
The company’s pipeline projects include:
- Lupuzor Lupus – It is currently in Phase 2 of its clinical study
- P140 CIDP – It is in Phase 2 of its clinical study.
- P140 Other indication – It is in the pre-clinical phase
The bull case for the ImmuPharma share price
After a prolonged bearish run, the stock slightly recovered in the year 2023. From a price of 1.84p at the start of the year, the stock last closed at 2.2135p. Overall, the stock has recovered by 20.3% during the current year.
The biopharma industry comprises a total of 20% of the total pharma industry1. What makes this sector a high-growth industry is the efficacy and safety of biopharmaceutical products. In addition, the ability of biopharma products to treat untreatable diseases gives the company owners the authority to charge a premium price for their products. As a result, ImmuPharma has the ability to enjoy explosive growth once the trial phase ends. Of course, this assumes the trials are successful.
The bear case for the ImmuPharma share price
The ImmuPhare share price has been in a prolonged bullish period. Since the past few years, the pharma company’s stock has been continuously declining, with a sharp decline in September 2023.
The stock kicked off the year 2022 at 6.6p and closed off the year at 1.84p. Overall, the stock declined by 72% during the year.
As the biopharma industry shifts towards mainstream business, the challenges it faces start aligning with them, too. As the industry expands, Immupharma is exposed to all the challenges and risks of maintaining competitiveness, affordability, and ease of access. In addition to these, as production capacity increases, so do the supply chain complexity and operational challenges.
ImmuPharma Share price prediction
While the ImmuPhare share price has been on its recovery path since the start of the year, analysts still have a cautious approach toward its future. The 12-month price target for the pharma company’s stock is currently at 2.34p, which is slightly below the firm’s current valuation.
Providing that this share price prediction is accurate, it would suggest that the growth potential of the firm is already baked into the current valuation.
Should I buy ImmuPharma shares today?
ImmuPharma has a very progressive and optimistic path to success. The company’s CEO is excited about the ongoing discussions for more commercial partnerships and the potential for major breakthroughs in the future.
However, I believe now is not the right time to start investing in ImmuPharma shares for my personal portfolio. Young pharmaceutical companies can take years or even decades to prove themselves, and it often ends in failure. Once the firm has had more time to progress, I may change my stance. But for now, these shares are staying on my watchlist.
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Article sources
Saima Naveed does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned. Views expressed on the companies and assets mentioned in this article are those of the writer and, therefore, may differ from the opinions of analysts in The Money Cog Premium services.
