Monopar Therapeutics (MNPR), founded in 2014, is a clinical-stage biopharmaceutical company focused on creating groundbreaking therapies for cancer and other life-threatening diseases. Despite its relatively small size within the biotech industry, Monopar’s distinctive approach with its radiopharmaceutical programs to tackle advanced and aggressive cancers has caught Wall Street’s attention.
Last year, the stock skyrocketed by an astounding 1,089%, far outpacing the broader market gain of 24%. While it’s not uncommon for biotech stocks to surge following a drug approval, such a dramatic gain raises questions about the key milestones Monopar achieved to drive this exceptional performance. Let’s find out what fueled Monopar’s remarkable growth and whether the stock has further room to climb this year.
What’s Behind Monopar Therapeutics Stock’s Gigantic Gain?
On Oct. 24, 2024, Monopar signed a licensing agreement with Alexion, a subsidiary of AstraZeneca (AZN) focusing on rare diseases, to advance the development and commercialization of ALXN-1840, a late-stage treatment for Wilson’s disease. This rare genetic disorder impairs the body’s ability to eliminate excess copper, potentially causing copper toxicity in vital organs like the liver and brain, which can be life-threatening. The candidate, designed as a once-daily oral treatment, has already completed a Phase 3 clinical trial. Monopar intends to collaborate with the U.S. FDA to determine the next steps for the drug’s development.
This partnership with AstraZeneca significantly boosted investor confidence, leading to a substantial increase in the MNPR stock price. Additionally, partnering with a pharmaceutical leader like AstraZeneca could pave the way for Monopar to secure more collaborations for its drug candidates in the future.
During the third quarter, the company reported notable progress in its radiopharmaceutical efforts, including the first patient dosing of its innovative therapeutic radiopharmaceutical MNPR-101-Lu for advanced solid cancers in December 2024. Monopar also presented “positive early clinical data from its ongoing open-label Phase 1 imaging and dosimetry clinical trial of MNPR-101-Zr” in September 2024. These developments have also played a role in driving the stock's upward momentum.
Monopar currently has no commercialized products and depends on grants, partnerships, and equity offerings to support its operations. In 2024, the company conducted multiple public offerings, raising $17.7 million through one such offering in the third quarter. By the end of the quarter, Monopar reported cash and cash equivalents of $6 million. Management anticipates that the available funds will sustain operations through the first half of 2026.
Additionally, the company secured an additional $40 million through a public offering in December. These capital raises have bolstered Monopar’s financial stability, supporting the advancement of its pipeline.
If approved and successfully commercialized, Monopar's MNPR-101 therapies and other pipeline assets have the potential to significantly enhance the company’s revenue streams. However, there are a lot of uncertainties involved.
What Does Wall Street Say About MNPR Stock?
Analysts are highly optimistic about MNPR stock, with all four analysts covering it giving a “Strong Buy” rating. The average target price for MNPR is $43.67, indicating a potential 50% increase from its current price.
Additionally, Piper Sandler analyst Christopher Raymond has set a high price target of $72 for the stock, suggesting a 148% gain over the next 12 months.
A Promising Buy, But There Are Risks
Although Monopar Therapeutics shows considerable potential, investing in early stage biotech companies carries inherent risks, including the possibility of clinical trial failures, regulatory delays, cash burn, and difficulties in market adoption of any approved products. Furthermore, while the company’s financial position is stable at the moment, ongoing capital raises could lead to share dilution, potentially diminishing shareholder value.
For risk-tolerant investors with a long-term outlook, Monopar Therapeutics stock offers a high-risk, high-reward investment opportunity. As with any stock, it is essential to conduct thorough research and assess one’s risk tolerance before investing in this promising but volatile clinical-stage biotech stock.
