On Tuesday, Jones Trading adjusted its outlook on Monopar Therapeutics (NASDAQ: MNPR), significantly increasing the stock's price target to $37.00 from the previous $9.00. The firm has maintained a Buy rating on the shares. This revision follows Monopar's recent announcement of a strategic partnership with Alexion (NASDAQ:ALXN), AstraZeneca (NASDAQ:AZN) Rare Disease, which is a subsidiary of AstraZeneca.
Monopar Therapeutics has entered into an exclusive worldwide in-licensing agreement with Alexion for ALXN-1840, a treatment candidate for Wilson's disease. This collaboration is anticipated to enhance Monopar's portfolio and offer new revenue streams. The agreement has been factored into Jones Trading's financial model for Monopar, resulting in the updated price target.
The analyst from Jones Trading expressed confidence in the potential of the newly in-licensed asset, ALXN-1840. The analyst's statement underscored the inclusion of risk-adjusted revenue projections from ALXN-1840 into their valuation model, which supports the firm's reiterated Buy rating and the raised price target over the next 12 months.
Monopar's strategic agreement with Alexion is aimed at advancing the treatment options for Wilson's disease, a rare genetic disorder. The in-licensing of ALXN-1840 could represent a significant step forward for Monopar in addressing this medical condition.
The raised target price reflects a substantial increase and suggests a positive outlook for Monopar Therapeutics' stock performance. The current Buy rating indicates that Jones Trading continues to see Monopar as a favorable investment opportunity, especially in light of the recent strategic developments.
In other recent news, Monopar Therapeutics has seen significant developments. The firm's stock price target was substantially increased by H.C. Wainwright following a licensing agreement with AstraZeneca for ALXN-1840, a drug candidate for Wilson's disease. Analysts from H.C. Wainwright and Jones Trading have maintained a Buy rating for Monopar, with the former raising the price target to $22.00. This licensing agreement is expected to transform Monopar into a profitable commercial entity within the next year.
Monopar has also announced a public offering of common stock, with terms yet to be finalized. Furthermore, Monopar reported no generated revenues for the second quarter of 2024 and a net loss of $0.10 per share. The firm has also initiated a Phase I therapeutic trial for MNPR-101-Lu in Australia, targeting patients with advanced solid cancers.
Additionally, Monopar announced a 5-for-1 reverse stock split and regained compliance with Nasdaq's minimum bid price requirement. The company has expanded its partnership with NorthStar Medical (TASE:PMCN) Radioisotopes, securing a long-term contract for the supply of actinium-225, a key radioisotope used in cancer treatment. Lastly, CFO Kim R. Tsuchimoto has retired, with Karthik Radhakrishnan set to assume her roles. These are recent developments at Monopar Therapeutics.
InvestingPro Insights
The recent strategic partnership between Monopar Therapeutics and Alexion has not only caught the attention of analysts but is also reflected in the company's market performance. According to InvestingPro data, Monopar has seen an impressive year-to-date price total return of 984.66%, with a particularly strong 235.45% return over the last month. This aligns with the positive outlook expressed by Jones Trading and the significant increase in their price target.
InvestingPro Tips highlight that two analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in Monopar's future performance. Additionally, the company's liquid assets exceed short-term obligations, indicating a solid financial position as it embarks on this new partnership.
However, investors should note that Monopar currently trades at a high Price / Book multiple of 19.36, which may reflect high expectations already priced into the stock. The company also suffers from weak gross profit margins and is not expected to be profitable this year, according to InvestingPro Tips.
For a more comprehensive analysis, InvestingPro offers 11 additional tips for Monopar Therapeutics, providing investors with a deeper understanding of the company's financial health and market position.
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