Soligenix, Inc. (NASDAQ:SNGX) just won itself an orphan designation in Europe thanks to Ricin poisoning prevention asset RiVax.
For a drug that had the same designation in tow for the U.S., investors are thrilled to see potential for the RiVax program as it steps on the gas with now two designations under wing. In reaction, shares are rocketing almost 16%.
Maxim analyst Jason McCarthy believes this win is crucial for the company’s future in gaining a green light, commenting: “With both in hand, the RiVax biodefense program is better positioned for a potential accelerated pathway to approval.”
Therefore, the analyst reiterates a Buy rating on SNGX stock with a $5 price target, which implies a whopping close to 116% upside from current levels. (To watch McCarthy’s track record, click here)
“Ricin poisoning is a major health threat. If it’s inhaled, it’s extremely toxic and it can also be absorbed through the eyes and skin. The RiVax program has already received over $20M in funding from regulators. The vaccine, with and without adjuvant has demonstrated high levels of neutralizing antibodies and in non-human primates induced 100% protection against lethal Ricin exposure […] The approval pathway will be via the two animal rule; animal toxin exposure for efficacy combined with healthy-subject human immunogenicity data (P1/2 study coming),” highlights McCarthy.
Ultimately, the analyst sees good momentum here, as he concludes: “The Rivax program continues to advance and the EU orphan designation further underscores a global need for an anti-Ricin vaccine. In addition, for Soligenix, the biodefense program has been a significant source of non-dilutive capital which we expect should continue as RiVax moves forward.”
According to TipRanks, Jason Kolbert of Maxim also rates a Buy on SNGX stock with a $4 price target, marking a 72% upside from where the stock is currently trading.