Stock Analysis & Valuation Genfit S.A. (GNFT.PA)

• Previous Close: €5.60
• Sector Valuation Confidence Level: High

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	55.70	895
Intrinsic value (DCF)	3.18	-43
Graham-Dodd Method	1.53	-73
Graham Formula	4.11	-27

Strategic Investment Analysis

Company Overview

Genfit S.A. (GNFT.PA) is a France-based biopharmaceutical company specializing in the discovery and development of innovative therapies and diagnostic solutions for metabolic and liver-related diseases. Listed on Euronext Paris, Genfit focuses on high-need areas such as primary biliary cholangitis (PBC), nonalcoholic steatohepatitis (NASH), and cholangiocarcinoma (CCA). Its lead candidate, Elafibranor, is in Phase 3 trials for PBC, while its NIS4 technology offers a non-invasive diagnostic solution for NASH. The company has strategic partnerships, including a licensing agreement with Labcorp for NASHnext, a blood-based diagnostic test, and with Genoscience Pharma for GNS561, a potential CCA treatment. With a market cap of approximately €192.6 million, Genfit operates in the high-growth biotechnology sector, targeting unmet medical needs in hepatology. Its diversified pipeline and diagnostic innovations position it as a key player in liver disease research.

Investment Summary

Genfit presents a high-risk, high-reward investment opportunity due to its focus on late-stage clinical candidates in niche liver diseases. The company’s lead asset, Elafibranor, could address a significant unmet need in PBC, but regulatory approval remains uncertain. Genfit’s collaboration with Labcorp for NASH diagnostics provides non-dilutive revenue potential, while its cash position (€81.8 million) offers near-term stability. However, the company’s net income (€1.5 million in 2024) reflects its reliance on clinical success, and its beta of 1.067 indicates higher volatility. Investors should weigh the potential upside of pipeline catalysts against the inherent risks of biotech development.

Competitive Analysis

Genfit competes in the competitive hepatology and metabolic disease space, where larger biopharma firms dominate. Its differentiation lies in its dual focus on therapeutics (Elafibranor, GNS561) and diagnostics (NIS4), reducing reliance on a single revenue stream. The NASH diagnostic market is crowded, but Genfit’s NASHnext, licensed to Labcorp, benefits from a trusted commercial partner. In PBC, Elafibranor faces competition from Intercept’s Ocaliva (OCA), though Genfit’s candidate may offer a better safety profile. For CCA, GNS561 is early-stage compared to approved therapies like Incyte’s Pemazyre. Genfit’s small size allows agility in clinical development but limits commercialization capabilities without partnerships. Its French base provides access to EU regulatory pathways but may slow U.S. market penetration. The company’s real competitive edge lies in its specialized liver disease expertise and strategic collaborations, though it lacks the scale of global peers.

Major Competitors

• Intercept Pharmaceuticals (ICPT): Intercept is a leader in liver disease therapeutics, with Ocaliva approved for PBC and previously explored for NASH. Its established commercial infrastructure gives it an edge over Genfit, but regulatory setbacks in NASH have weakened its position. Intercept’s broader pipeline includes advanced fibrosis treatments, directly competing with Genfit’s focus.
• Madrigal Pharmaceuticals (MDGL): Madrigal’s Resmetirom, a potential first-approved NASH therapy, threatens Genfit’s diagnostic business by reducing reliance on biopsies. Madrigal’s U.S. focus and late-stage assets make it a formidable competitor, though Genfit’s diagnostic partnerships could remain relevant for early-stage disease monitoring.
• Alnylam Pharmaceuticals (ALNY): Alnylam’s RNAi therapeutics, including Givosiran for acute hepatic porphyria, showcase its platform advantage in liver diseases. Its robust pipeline and commercial success in rare diseases overshadow Genfit’s smaller-scale efforts, though Genfit’s PBC and CCA programs address different patient subsets.
• Viking Therapeutics (VKTX): Viking’s NASH and fibrosis candidates compete with Genfit’s Elafibranor. Its Phase 2b data for VK2809 showed strong efficacy, positioning it ahead in NASH therapeutics. Viking’s U.S. base and cleaner safety profile may attract more investor interest compared to Genfit’s EU-centric approach.