On Wednesday, NervGen Pharma Corp (NGEN:CN) received a Market Perform rating from Raymond James, accompanied by a price target of C$3.00. The clinical-stage biotechnology firm is recognized for its innovative approach in developing a potential treatment for spinal cord injury (SCI), which is currently undergoing a Phase 1b/2a program.
Raymond James acknowledged the significance of NervGen's work, noting that their drug could be the first to show functional improvement in SCI patients. The company's research could impact an estimated 700,000 patients across the United States and the EU5, with a broader potential reach of approximately 2 million individuals globally.
Despite the potentially transformative nature of NervGen's research, Raymond James maintains a cautious stance due to the inherent risks of drug development for SCI. The firm's conservative position is based on the need for a clear clinical signal that would support the endpoints of a future registration trial for NVG-291, NervGen's investigational drug. Such data is anticipated to come from the Phase 1b/2a top-line results expected around the first half of 2025.
Raymond James also presented a scenario analysis for NervGen's valuation. Should the company progress to a Phase 3 or registrational trial around 2027, following a positive Phase 2 readout expected in 2026, the valuation of NervGen could potentially escalate to approximately C$29 per share. However, this scenario hinges on the successful advancement of NervGen's clinical program and the achievement of positive outcomes in the upcoming trials.
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