H.C. Wainwright maintains Buy on Vivani Medical stock

On Thursday, H.C. Wainwright analyst Yi Chen maintained a Buy rating and a $4.00 price target on Vivani Medical (TASE:BLWV), Inc. (NASDAQ: VANI), currently trading at $1.12 with a market capitalization of $66.34 million, following the company’s announcement of positive preclinical data for its product NPM-139. According to InvestingPro data, analyst price targets range from $4.00 to $8.00, suggesting significant upside potential despite the stock’s high volatility (Beta 3.5). Vivani Medical, on March 26, shared results from an ongoing study in healthy rats, indicating that a single administration of NPM-139 led to significantly reduced body weights compared to a control group over a 91-day period.

The study showed that NPM-139, a subdermal semaglutide implant designed for chronic weight management, provided continuous and consistent exposure to semaglutide throughout the treatment. Pharmacokinetic data backed these findings, demonstrating the implant’s effectiveness. This data builds on previous results where NPM-139 maintained therapeutic levels of semaglutide for up to six months in healthy rats.

Further bolstering the potential of NPM-139, in vitro tests have suggested that the implant’s chemical and physical properties remain stable for over a year, hinting at the possibility of an annual dosing regimen. The positive outcomes are seen as a validation of Vivani Medical’s NanoPortal technology platform, which is pivotal to the development of their product line.

Looking ahead, Vivani Medical’s management has confirmed that the ongoing Phase 1 trial of another implant, NPM-115 (exenatide), is progressing as expected. Topline data from this trial is anticipated to be released in mid-2025, which will likely provide valuable insights for the further development of both NPM-115 and NPM-139. InvestingPro analysis shows the company maintains a healthy current ratio of 3.41, though it’s currently burning through cash with negative EBITDA of $24.02 million in the last twelve months. The company’s overall Financial Health score is rated as FAIR.

In light of these developments, Chen’s reiteration of the Buy rating and price target reflects confidence in the potential of Vivani Medical’s pipeline and the underlying technology platform. Discover more insights about VANI’s financial health and growth potential with InvestingPro, which offers 8 additional exclusive ProTips and comprehensive financial metrics to help inform your investment decisions.

In other recent news, Vivani Medical, Inc. announced promising preclinical results for its NPM-139 semaglutide implant, which demonstrated nearly 20% placebo-adjusted weight loss in a study conducted on rats. The implant is designed for chronic weight management with potential once or twice-yearly dosing. Additionally, Vivani has successfully administered its GLP-1 (exenatide) implant in the LIBERATE-1 clinical trial, marking a significant advancement in the treatment of metabolic diseases. The trial achieved full enrollment quickly, highlighting strong interest in the new six-month, subdermal implant.

Vivani plans to spin off its division Cortigent, Inc., which focuses on neurostimulation technology, into a separate publicly traded company. This strategic move is aimed at allowing Vivani to concentrate on its core business of developing drug implants for chronic weight management and type 2 diabetes. Analyst Yi Chen from H.C. Wainwright maintained a Buy rating on Vivani Medical with a price target of $3.00, viewing the spin-off as a strategic move to enhance value creation. The spin-off is expected to be completed by the third quarter of 2025, with Vivani stockholders receiving shares in the new entity.

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