Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - RBC Capital lowered its price target on CorMedix (NASDAQ:CRMD) to $21.00 from $23.00 on Monday, while maintaining an Outperform rating on the stock. The new target still represents significant upside from the current price of $10.18, with analyst targets ranging from $17 to $23. According to InvestingPro data, the company maintains strong financial health with a "GREAT" overall score.
The firm’s analysis focused on the Transitional Drug Add-on Payment Adjustment (TDAPA) dynamics and whether large dialysis organizations (LDOs) would maintain incentives to use DefenCath after TDAPA expires in 2026+ or 2028+.
RBC conducted a sensitivity analysis examining potential economic breakpoints for DefenCath and dialysis organizations, concluding that shares are significantly undervaluing the cash flows generated by the business.
The analysis determined that even in a worst-case scenario—where DefenCath is only used to receive the CMS add-on payment—the floor value would be approximately $14 per share.
RBC stated it would recommend buying the stock at current levels, noting that CorMedix is trading at a "significant discount" to its revised valuation.
In other recent news, CorMedix Inc . announced the completion of its $150 million convertible notes offering, which is set to mature in 2030. The company also revealed plans to acquire Melinta Therapeutics LLC for $300 million, expanding its portfolio with seven additional drug products. The acquisition involves a payment of $260 million in cash and $40 million in equity, along with potential milestone payments and royalties. Additionally, CorMedix completed enrollment for its Phase III ReSPECT trial evaluating REZZAYO for preventing fungal infections, with results expected in the second quarter of 2026.
CorMedix also made a strategic equity investment of $5 million in Talphera, Inc., securing an exclusive right of first negotiation for acquisition after Phase 3 results for Talphera’s lead candidate, Niyad, are announced. This investment was part of a larger $29 million financing round led by CorMedix, which includes an initial closing of $17 million. JMP Securities reiterated its Market Outperform rating for CorMedix, maintaining a price target of $22.00. These developments reflect CorMedix’s ongoing efforts to expand its pipeline and strengthen its financial position.
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