InflaRx, a small biotech company, just decided to stop testing one of its leading drugs. The drug is called vilobelimab, and it was being tested for a rare and painful skin condition called pyoderma gangrenosum.
After looking at the early results of the study, an independent review board said the drug wasn’t helping enough to keep going. So InflaRx is calling it off.
There were no new safety problems, but the trial wasn’t going to lead to approval. That’s a setback for the company because pyoderma gangrenosum is hard to treat, and there aren’t many good options out there. InflaRx had hoped vilobelimab could fill that gap.
The same drug, under the name Gohibic, is still allowed for emergency use in hospitals for certain COVID-19 patients, but it hasn’t been officially approved by the FDA for any condition.
New Focus on Another Drug
Even though this trial didn’t work out, InflaRx isn’t giving up. The company is now focusing on another drug in its pipeline called INF904. This one is a pill, and it’s being tested for two chronic skin diseases, chronic spontaneous urticaria and hidradenitis suppurativa. Results from a small study are expected this summer.
The company may also look at adding more parts to that study, like testing long-term dosing. These new steps are part of a bigger plan to manage costs and stretch its cash further.
Analysts Still See Upside
Despite the failed trial, analysts are still mostly positive about InflaRx. Guggenheim is keeping its Buy rating and a price target of $10.
The stock is trading under a dollar right now, so that would be a big move up if things go well with INF904.
Other firms like Raymond James and Cantor Fitzgerald also believe there’s potential, pointing to the company’s strong cash position. InflaRx had about $75 million in cash at the end of March. That should be enough to fund operations into 2027.
Even though losing the vilobelimab trial for skin disease hurts, InflaRx is staying flexible. With money in the bank and another drug showing promise, the company might still have a shot at bouncing back.
