Street Calls of the Week
Investing.com - Belite Bio, Inc, ADR (NASDAQ:BLTE), currently valued at $2.16 billion with shares trading at $65.68, has completed a $275 million PIPE transaction, raising approximately $125 million in gross proceeds from issuing 1.95 million shares, with potential for an additional $150 million if accompanying warrants are fully exercised.
The transaction, completed Tuesday, featured warrants with a strike price of $76.80 per share. Leading the investment was RA Capital Management, with participation from Eventide Asset Management, Marshall Wace, RTW Investments, Soleus Capital, and Vestal Point Capital.
Benchmark has reiterated its Buy rating and $80.00 price target on Belite Bio following the announcement, with InvestingPro data showing analyst targets ranging from $80 to $110. The firm noted that proceeds will be used for commercialization preparation, working capital, and general corporate purposes.
The additional capital is expected to extend Belite Bio’s cash runway beyond the company’s previous estimate of at least four years from the second quarter of 2025. The company maintains strong liquidity with a current ratio of 23.15, indicating robust short-term financial health. Get deeper insights into Belite Bio’s financial metrics and access comprehensive analysis with InvestingPro.
Benchmark identified the completion of the DRAGON trial around year-end 2025 as the next catalyst for the stock, to be followed by an NDA submission to the FDA in the first half of 2026.
In other recent news, Belite Bio Inc. reported earnings for the second quarter of 2025, surpassing analyst expectations despite reporting losses. The company achieved an earnings per share (EPS) of -0.31 USD, outperforming the forecasted -0.39 USD, which represents a positive surprise of 20.51%. Additionally, Belite Bio raised $125 million through a private placement to advance its eye disease drug development, with the potential for an additional $150 million through warrant exercises. This transaction was led by RA Capital Management and involved several other investment firms. Benchmark has reiterated its Buy rating for Belite Bio, maintaining an $80 price target, citing promising developments in its clinical programs. The firm noted encouraging interim results from Belite’s Phase 3 DRAGON trial and suggested the company pursue accelerated regulatory approval. These developments highlight Belite Bio’s ongoing efforts and progress in its clinical and financial endeavors.
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