Dianthus Therapeutics stock maintains Buy rating at Guggenheim after licensing deal

Investing.com - Guggenheim has reiterated a Buy rating and $100.00 price target on Dianthus Therapeutics (NASDAQ:DNTH) following the company’s announcement of a licensing agreement. The stock, currently trading at $37.37, has surged over 90% in the past six months and sits near its 52-week high of $40.16, according to InvestingPro data.

Dianthus Therapeutics announced an exclusive global licensing agreement with Leads Biolabs (HKG:9887) for DNTH-212, a first-in-class bifunctional inhibitor designed to modulate both innate and adaptive immunity across autoimmune indications including SLE, CLE, SjD, LN, and DM. With a strong current ratio of 13.12 and more cash than debt on its balance sheet, the $1.43 billion market cap company appears well-positioned to execute this deal.

Under the agreement terms, Leads Biolabs will receive up to $38 million in upfront and near-term payments, potential milestone payments totaling $962 million, and tiered royalties ranging from mid-single digits to low double-digits on net sales outside China.

Preclinical data showed DNTH-212 demonstrated stronger plasmacytoid dendritic cell inhibition than BIIB’s litifilimab in vitro and greater Ig reductions than VRTX’s povetacicept in NHPs, with potential for quarterly or less frequent subcutaneous dosing.

Dianthus plans to initiate a Phase I SAD study in healthy volunteers and SLE patients in Q4 2025 with top-line results expected in the second half of 2026, with the company stating the transaction will not impact its previously guided cash runway into 2028.

In other recent news, Dianthus Therapeutics has successfully closed a public offering, raising approximately $288 million in gross proceeds. The company sold 7,627,879 shares of common stock at $33.00 per share, including the full exercise of underwriters’ option to purchase an additional 1,140,000 shares. This financial move follows the pricing of an upsized public offering at $251 million, which included pre-funded warrants for certain investors. Analyst firms have also shown positive sentiment towards Dianthus. Jefferies raised its price target to $66 from $51, maintaining a Buy rating, citing positive data from the company’s Phase II trial for generalized myasthenia gravis. Truist Securities initiated coverage with a Buy rating and a $56 price target, highlighting the company’s approach to targeting the autoantibody mediated complement cascade. Clear Street also initiated coverage with a Buy rating, setting a $100 price target, and praised Dianthus’s lead drug candidate, claseprubart, as a promising treatment for several autoimmune conditions. These developments indicate growing interest and confidence in Dianthus’s potential within the biotechnology sector.

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