Roth slashes price target on Longeveron

Roth Capital Markets analyst Boobalan Pachaiyappan lowered his price target on Longeveron (Longeveron Stock Quote, Chart, News, Analysts, Financials NASDAQ:LGVN) to $3.00 from $10.00 in an Aug. 14 report, citing suboptimal clinical progress and excessive dilution despite what he called “intriguing science” and a first-mover advantage in treating hypoplastic left heart syndrome (HLHS).

Longeveron is a mid-stage biotech developing regenerative cell therapies for HLHS, Alzheimer’s disease and other conditions. Its lead asset, laromestrocel, is fully enrolled in a pivotal Phase 2b (ELPIS II) trial for HLHS, with top-line data expected in Q3 2026.

“If positive, a Biologics Licensing Application could occur in Q4 2026, with potential FDA approval in mid-2027,” Pachaiyappan said.

Phase 1b results in Stage-II HLHS patients showed 100% five-year transplant-free survival compared with 80% historically, along with evidence of cardiac improvement.

He noted laromestrocel is administered once during a standard Stage 2 HLHS surgery in infants aged three to six months, avoiding repeated treatments and ancillary costs seen with other cell therapies.

Based on a one-time treatment price of $600,000 and 50% penetration in a U.S. market of 1,000 new cases annually, Pachaiyappan sees potential peak sales above $350-million by 2040, even with later competition.

He attributed Longeveron’s share price drop of about 56% year-to-date, versus a 2% decline for the XBI index, partly to the nearly four years it took to complete ELPIS II enrollment, which will likely prevent the company from securing and selling a priority review voucher before the program sunsets in September 2026. He also cited the absence of a clear business development path, forcing the company to rely on dilutive financings.

For Q2 2025, Longeveron reported a net loss of $5.0-million, or $0.33 per share, better than Pachaiyappan’s forecast for a $5.8-million loss, or $0.38 per share. R&D expenses were $2.6-million and G&A expenses $3.0-million, both slightly below his estimates. The company ended the quarter with $10.3-million in cash, supplemented by a $5-million equity financing in August, which is expected to fund operations into Q1 2026. Pachaiyappan expects another $12.5-million to be raised via short-term warrant exercises around that time, and possibly $20-million more after positive ELPIS II data.

Updating his model to include recent financings, a higher WACC of 16% and revised projections, Pachaiyappan reiterated his bullish stance.

“Longeveron remains underappreciated, with a differentiated, potentially first-to-market therapy in HLHS. While financing overhang is a concern, positive Phase 2b results could be a major inflection point for the stock.”

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