Eledon Pharmaceuticals (ELDN) Stock Forecast & Price Target

Eledon Pharmaceuticals Inc. has produced encouraging results regarding its lead compound, tegoprubart, which demonstrates potential to enhance graft survival and kidney function in transplant patients compared to standard care. The favorable safety and tolerability profile observed in the recent Phase 2 BESTOW trial, showing significantly reduced adverse effects compared to tacrolimus, reinforces the compound's therapeutic promise. Furthermore, the company's focus on targeting the CD40L pathway positions it strategically within the lucrative transplantation and autoimmune disease markets, suggesting a strong foundation for future growth and advancements in treatment efficacy.

Eledon Pharmaceuticals reported a net loss of $17.5 million for 3Q 2025, a significant decline from the prior year's net income of $77 million, which had been bolstered by a substantial non-cash gain. The decrease in operational expenses, noted at $19.1 million in the latest quarter compared to $20.5 million previously due to reduced R&D spending, may not substantially mitigate the financial challenges ahead. Multiple risks, including the potential failure of the company's lead asset, tegoprubart, in clinical trials, regulatory approvals, and market penetration, coupled with concerns around reimbursement and dilution, present a substantial negative outlook for the stock.