enGene Therapeutics: Slashing Cash Burn To Bring Their Asset To The Market

enGene Therapeutics remains deeply undervalued, trading below its $3.97/share cash position despite pipeline and execution risks.

ENGN’s lead asset, detalimogene voraplasmid, faces FDA approval risk due to weak 12-month durability, but management is pursuing a surfactant cohort to address efficacy. Cost-saving measures, including a 50% workforce reduction, extend ENGN’s cash runway into 2029, supporting operations through pivotal BLA milestones.

With a risk-adjusted fair value of $6.65/share and downside cushioned by cash, I maintain a Buy rating, balancing high risk against significant upside.

About three months ago, I wrote an article on enGene Therapeutics Inc. (ENGN) following an 80% stock price drop. This drop was caused by weaker-than-expected Phase 2 interim data for their lead asset, an in vivo gene therapy.