LGVN: Updating Model Following 2Q Results

We are maintaining our Buy rating and $20 (peak sales-based) price target on Longeveron LGVN. The company reported 2Q results on Friday, with 2Q operating expenses of $4.4M versus our $5.4M estimate. 2Q revenue of $0.5M exceeded our $0.2M estimate, on higher clinical trial revenue than we had modeled. LGVN finished 2Q with $27.0M in cash and short term investments, which is expected to enable LGVN to fund operations into the first half of 2024.

Key operational updates. LGVN's Phase2a study for Lomecel-B for the treatment of mild Alzheimer's is at 50% enrollment and management expects to enroll the remainder of the patients on schedule (by the end of 2022). LGVN's Phase 2a study (ELPIS II) of Lomecel-B in infants with Hypoplastic Left Heart Syndrome (HLHS) continues to enroll patients; we expect enrollment to continue into 2023. We remind investors that the HLHS program remains the primary driver of our LGVN price target. LGVN's Aging Frailty (AF) amended study design was accepted by Japanese regulators, enabling that trial to commence. LGVN also reported that its Phase 1/2 HERA trial (influenza vaccine in combination with Lomecel-B) met the primary endpoint for safety in the randomized placebo-control portion of the study.

View the complete EF Hutton report here.

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