On Thursday, Stifel showed continued optimism for HilleVax, Inc. (NASDAQ:HLVX), raising the price target on the company's stock to $34 from $30, while maintaining a Buy rating. The adjustment comes in anticipation of upcoming data from a key trial for the company's norovirus vaccine candidate.
HilleVax is currently conducting the Phase 2b NEST-IN1 trial, which is evaluating HIL-214, a potential first-in-class vaccine aimed at preventing norovirus-mediated acute gastroenteritis (AGE) in infants. The firm expressed confidence in the trial's design and execution, and it is optimistic about the vaccine meeting the efficacy guidance provided by HilleVax's management.
The company's guidance suggests that the vaccine could achieve over 70% efficacy. This expectation is supported by results from previous Phase 1 and Phase 2 trials, which showed around 60% efficacy against a different norovirus strain and observed significantly more AGE events in the placebo group compared to the vaccinated group.
Stifel's revised price target reflects a positive outlook on the potential for the vaccine to show clinically meaningful data from the NEST-IN1 trial. The firm also anticipates that successful trial outcomes could lead to the expansion of HIL-214 development to include adult populations at risk of norovirus infection, which could significantly impact the company's valuation.
The updated price target is also influenced by reduced expenditure estimates for HilleVax beyond fiscal year 2024, suggesting a more efficient allocation of resources as the company progresses with its vaccine development.
The market is watching closely as HilleVax advances through this critical phase of clinical trials, with significant implications for both infant and adult health management in the face of norovirus threats.
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