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Forbion growth opportunities fund increases stake in Engene Holdings with $3 million purchase

Published 19/10/2024, 07:18 am
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Forbion Growth Opportunities Fund I Cooperatief U.A. has expanded its investment in enGene Holdings Inc. (NASDAQ:ENGN) through a series of stock purchases totaling approximately $3,012,673. These transactions occurred between December 27, 2023, and October 8, 2024, with purchase prices ranging from $5.94 to $9.09 per share.

The largest acquisition took place on September 30, 2024, when Forbion acquired 341,332 shares at an average price of $6.34 each. This strategic move increased Forbion's total holdings in enGene Holdings to over 2.4 million shares, reflecting the fund's continued confidence in the company's potential.

Forbion Growth Management B.V., acting as the sole director of Forbion Growth Opportunities Fund I, executed these transactions, further solidifying its position as a significant stakeholder in the biotechnology firm.

In other recent news, Engene Holdings Inc. has seen significant developments in its operations and research. The company reported preliminary results from its LEGEND study for a bladder cancer treatment, detalimogene, which prompted Leerink Partners to adjust its price target for Engene to $17 while maintaining an 'Outperform' rating. Morgan Stanley (NYSE:MS) also maintained an 'Overweight' rating and a $40 price target for Engene, citing potential for the therapy. Oppenheimer confirmed its Outperform rating and $30.00 price target, emphasizing the potential of Engene's gene therapy, EG-70, for treating high-risk non-muscle invasive bladder cancer.

Engene plans to amend the LEGEND protocol and start enrolling additional cohorts in the near future. The company also announced leadership changes, including the appointment of Ron Cooper as CEO and the promotion of Dr. Raj Pruthi to CMO. Engene's financial position was noted as robust following a $200 million private investment, with projected sales reaching approximately $530 million by 2031 after an expected product launch in 2027.

These are recent developments, and investors are advised to keep an eye on further updates from the company, particularly regarding the LEGEND trial and the potential impact of the protocol amendment on long-term outcomes.

InvestingPro Insights

Forbion's recent investment in enGene Holdings Inc. (NASDAQ:ENGN) comes at a time when the company's stock has shown significant short-term momentum. According to InvestingPro data, ENGN has experienced a 29.35% price total return over the past week and a 27.92% return over the last month. This recent uptick may have influenced Forbion's decision to increase its stake, potentially seeing value in the company despite its current financial challenges.

InvestingPro Tips highlight that ENGN is trading at a significant discount to its fair value based on analyst price targets. With a fair value of $32 per share according to analyst targets, compared to the previous closing price of $9.30, there could be substantial upside potential if the company can overcome its current profitability issues.

However, investors should note that ENGN's financials show some areas of concern. The company reported an adjusted operating income of -$55.28 million for the last twelve months as of Q3 2024, indicating ongoing operational challenges. Additionally, the return on assets stands at -78.13% for the same period, suggesting difficulties in efficiently converting assets into profits.

These insights from InvestingPro provide context to Forbion's investment strategy and highlight both the potential opportunities and risks associated with ENGN. For readers interested in a more comprehensive analysis, InvestingPro offers 15 additional tips for ENGN, which could provide further depth to understanding the company's financial position and market prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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