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Investing.com - Dianthus Therapeutics (NASDAQ:DNTH), currently trading near its 52-week high with a market capitalization of $1.4 billion and an impressive 90% gain over the past six months, received a Buy rating reiteration from TD Cowen analyst Yaron Werber following the company’s exclusive license agreement with Leads Biolabs for DNTH212, a Phase 1 bifunctional protein targeting BDCA2 x BAFF/APRIL.
The agreement, announced Thursday, positions DNTH212 as a potential first- and best-in-class dual-targeted approach for treating autoimmune diseases. Dianthus plans to announce specific indications for the therapy in 2026, with potential candidates including Sjogren’s, CLE, SLE, lupus nephritis, dermatomyositis, and several other autoimmune conditions.
Under the deal terms, Dianthus will pay Leads Biolabs $38 million in upfront and near-term milestones, with an additional $962 million in potential milestone payments and tiered royalties ranging from mid-single to low-double digits on sales outside Greater China. According to InvestingPro data, analysts maintain a strong Buy consensus with price targets ranging from $40 to $100 per share.
Leads Biolabs will begin a Phase 1 healthy volunteer single ascending dose study in China during the fourth quarter of 2025, with data expected in the second half of 2026. Following this, Dianthus plans to commence a multiple ascending dose study, building on the FDA’s IND clearance received in September.
Despite the licensing costs, Dianthus maintains its previous cash runway guidance into 2028, with approximately $525 million in pro forma cash, which the company indicates is sufficient to fund DNTH212 development alongside its existing pipeline. InvestingPro analysis confirms the company’s strong liquidity position, with a current ratio of 13.12 and more cash than debt on its balance sheet. Get access to 10+ additional ProTips and comprehensive financial metrics with InvestingPro to make more informed investment decisions.
In other recent news, Dianthus Therapeutics has announced the closing of a public offering, raising approximately $288 million in gross proceeds. The company sold over 7.6 million shares at $33.00 per share, including the full exercise of underwriters’ options for additional shares. Additionally, Dianthus Therapeutics has entered into a global licensing agreement with Leads Biolabs for DNTH-212, a bifunctional inhibitor targeting autoimmune indications. Analyst firms have shown positive sentiment towards Dianthus, with Guggenheim reiterating a Buy rating and a $100 price target following the licensing deal. Truist Securities initiated coverage with a Buy rating and a $56 price target, highlighting the company’s approach to complement cascade inhibition. Clear Street also initiated coverage with a Buy rating, valuing the stock at $100, citing the potential of Dianthus’s lead drug candidate as a complement inhibitor. Jefferies raised its price target to $66 from $51, maintaining a Buy rating, based on positive data from a Phase II trial for generalized myasthenia gravis. These developments indicate a strong interest in Dianthus’s potential to advance treatment standards in autoimmune conditions.
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