Maxim Group initiated coverage of Longeveron (NASDAQ:LGVN) with a “buy” rating and $14 price target. The stock closed at $6.52 on March 23.
Longeveron is developing a medicinal signaling cell therapy, Lomecel-B, for aging-related and life-threatening conditions in three main indications: aging frailty, Alzheimer’s disease (AD), and hypoplastic left heart syndrome (HLHS).
A Phase 2a study is enrolling for Lomecel-B in AD. “We expect 2022 to be a busy year in AD. Activity in the space could draw investor focus to Longeveron,” writes analyst Michael Okunewitch.
HLHS is a rare heart condition present from birth, in which the left ventricle is severely underdeveloped or absent, with a high mortality rate. Enrollment is underway in a Phase 2 study.
Aging frailty is common among the elderly, affecting about 8.5 million individuals in the U.S.. Longeveron has completed a Phase 2b trial in the U.S., with a Phase 2 in Japan set to begin in the first half of 2022. Mr. Okunewitch said future regulatory interactions should clarify the clinical path forward.
Longeveron has three shots on goal and is well-capitalized with about $35-million in cash and runway through 2023, he added. “With capital flowing into aging and longevity … Longeveron is an inexpensive later-stage play with multiple shots on goal, in our view.”
