Lucid Capital Initiates Coverage of Genelux with Buy Rating and $10 Price Target

Lucid Capital initiated coverage of Genelux (GNLX) with a Buy rating and $10 price target. The firm sees a "low hanging fruit" opportunity for lead candidate Olvi-Vec in platinum-resistant/refractory ovarian cancer.

Lucid Capital Markets has initiated coverage on Genelux Corp. (NASDAQ: GNLX) with a Buy rating and a $10.00 price target. The stock, which has delivered a 50% return over the past year, currently trades at $3.33. The clinical-stage biotechnology company is developing oncolytic viral immunotherapies for cancer treatment, with its lead asset, Olvi-Vec, targeting platinum-resistant/refractory ovarian cancer (PRROC) and lung cancer.

Olvi-Vec is designed to destroy cancer cells while stimulating the immune system to fight tumors. The company maintains a strong liquidity position with a current ratio of 4.67, indicating solid short-term financial stability. Lucid Capital Markets highlighted upcoming data readouts as potential catalysts, including second-line non-small cell lung cancer (NSCLC) results expected in the second half of 2025 and pivotal fourth-line PRROC data in the first half of 2026. The firm estimates peak sales for Olvi-Vec could reach approximately $2.5 billion.

The $10 price target is primarily driven by Olvi-Vec, which accounts for about $9 per share of the valuation, with the remainder attributed to earlier pipeline and platform value. Genelux’s Chinese partner, Newsoara, is also investigating Olvi-Vec in small cell lung cancer. As of the first quarter of 2025, Genelux reported approximately $35.1 million in cash and equivalents, which Lucid Capital Markets believes could provide runway through several key data readouts and into the third quarter of 2026.

Investors should note that while Genelux holds more cash than debt on its balance sheet, it is currently burning through cash rapidly. Additionally, the company is experiencing increased enrollment in its U.S. Phase 2 trial for recurrent non-small cell lung cancer, which suggests a potential benefit over standard care.

References:
[1] https://www.tipranks.com/news/the-fly/genelux-initiated-with-a-buy-at-lucid-capital-thefly
[2] https://www.investing.com/news/analyst-ratings/lucid-capital-markets-initiates-genelux-stock-with-buy-rating-10-target-93CH-4143768