Tonix Pharmaceuticals stock halted ahead of FDA approval news
Investing.com - Guggenheim lowered its price target on Prime Medicine (NASDAQ:PRME) to $5.00 from $18.00 on Wednesday, while maintaining a Buy rating on the gene editing company’s stock. Currently trading at $3.46, the stock sits below InvestingPro’s Fair Value estimate, suggesting potential upside despite recent price target cuts. Analyst targets now range from $4 to $10.
The significant price target reduction reflects adjusted expectations for Prime Medicine’s development pipeline, which currently features preclinical-stage programs for Wilson’s disease and Alpha-1 Antitrypsin Deficiency (AATD). With a market capitalization of $453.61 million and a weak Financial Health Score according to InvestingPro, investors should closely monitor the company’s development progress.
Guggenheim assigned a 25% probability of success to both the Wilson’s disease and AATD programs in its valuation model, while completely removing the Chronic Granulomatous Disease (CGD) program from its analysis after the company de-prioritized it.
The research firm updated its financial projections based on management’s cash guidance, which indicates the company has sufficient funding to support operations into 2027. Guggenheim’s revised model incorporates Prime Medicine’s recent capital raise of $128.2 million and an additional $6 million from the Cystic Fibrosis Foundation.
Prime Medicine’s pro forma cash position stands at approximately $260 million following these transactions, with an updated share count that includes 43.7 million shares from the recent raise and 1.8 million shares purchased by the Cystic Fibrosis Foundation.
In other recent news, Prime Medicine reported its second-quarter 2025 financial results, revealing a decrease in cash and equivalents from $158.3 million at the end of the first quarter to $115.4 million. Following this announcement, Chardan Capital Markets lowered its price target for Prime Medicine from $12.00 to $10.00, though it maintained a Buy rating. Additionally, the company has commenced an underwritten public offering of its common stock, with plans to allow underwriters a 30-day option to purchase up to an additional 15% of the shares. The offering is subject to market conditions, and there is no guarantee regarding its completion, size, or terms.
Prime Medicine also announced securing up to $24 million in funding from the Cystic Fibrosis Foundation to accelerate the development of therapies for cystic fibrosis. This development led JMP Securities to reiterate its Market Outperform rating and maintain a $6.00 price target. H.C. Wainwright also reiterated its Neutral rating following the expanded partnership with the CF Foundation. These recent developments highlight Prime Medicine’s ongoing efforts in financial adjustments and strategic partnerships.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.