H.C. Wainwright raised its price target on Imunon (NASDAQ: IMNN) to $25.00 from $14.00 and kept a Buy rating on the stock, in a move that highlights substantial upside from the company’s market price. Imunon was trading at $3.07, which the research firm noted is about 7% above its 52-week low of $2.99 and roughly 93% below its 52-week high of $41.22.
The firm’s upgrade follows Imunon’s announcement of a strategic restructuring designed to lower operating expenses and concentrate its personnel and capital on the Phase 3 OVATION 3 trial in newly diagnosed advanced ovarian cancer patients. According to InvestingPro data cited by the research firm, Imunon has been "quickly burning through cash," reporting negative free cash flow of $14.95 million over the last twelve months.
As detailed by the company, the restructuring will cut roles that are not essential to executing the pivotal OVATION 3 study and will clarify and refine responsibilities for remaining employees to better support the trial. The company also disclosed an executive change: Khursheed Anwer, Imunon’s Executive Vice President and Chief Scientific Officer, will retire effective February 20, 2026, after nearly 12 years with the company.
H.C. Wainwright observed that the restructuring is consistent with Imunon prioritizing its Phase 3 program rather than advancing other pipeline assets, noting that developing additional assets would demand substantial capital in the near to mid-term. The research firm also emphasized that, despite the recent financing, disciplined spending is necessary to sustain enrollment and site activation for OVATION 3.
Imunon disclosed a registered direct offering announced on December 30, 2025, that raised about $7 million through a securities purchase agreement with a healthcare-focused institutional investor. Management said the proceeds extend the company’s cash runway to the third quarter of 2026.
Financial results for the third quarter of 2025 showed a material reduction in net loss and operating expenses compared with prior periods, reflecting the early effects of the company’s cost-containment measures. Company statements indicate the OVATION 3 trial is progressing ahead of schedule, and the restructuring is explicitly intended to align headcount and roles with that priority.
Market responses have varied: Brookline Capital Markets maintained a Buy rating on Imunon but trimmed its price target to $16 from $21, citing dilution stemming from the recent registered direct offering. H.C. Wainwright’s higher target reflects a different view on the company’s prospects if the Phase 3 trial proceeds successfully under the tightened cost structure and extended cash runway.
Implications and next steps
Imunon’s immediate strategy centers on preserving capital and focusing operational resources on completing and advancing the OVATION 3 Phase 3 study. The company will need to continue managing spending carefully to support trial enrollment and site activation, even after the recent fundraising and headcount adjustments.