S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
On Wednesday, H.C. Wainwright analyst Yi Chen maintained a Buy rating on Vivani Medical (TASE:BLWV), Inc. (NASDAQ: VANI) with a price target of $3.00. The micro-cap company, currently valued at $61.6 million, has seen its stock trade near its 52-week low of $1.03, according to InvestingPro data. The endorsement follows Vivani Medical’s announcement of its intention to spin off its division Cortigent, Inc., which is dedicated to developing brain implant devices aimed at aiding patients in regaining essential body functions. With a strong current ratio of 3.41, the company maintains healthy liquidity to support its strategic initiatives.
Vivani Medical has disclosed plans to file a Form 10 registration statement with the Securities and Exchange Commission (SEC), setting the stage for Cortigent to become a fully independent, publicly traded entity. The proposed spin-off is anticipated to be finalized by or before the third quarter of 2025, with Vivani stockholders receiving a proportional distribution of shares in the new company.
The company’s strategic focus will remain on its existing product line, which includes the development of miniature, subdermal GLP-1 implants that are designed for once or twice-yearly dosing. These implants are being developed to manage chronic weight, type 2 diabetes, and other chronic diseases.
Chen views the planned spin-off as a strategic move that will enable both Vivani and Cortigent to concentrate on their individual strategic goals and enhance their potential for value creation. Moreover, the spin-off is designed to allow Vivani’s shareholders to have a stake in Cortigent’s future prospects. Cortigent will continue to operate from its headquarters in the Los Angeles area. InvestingPro analysis reveals the stock’s high volatility with a beta of 3.5, while analyst price targets range from $3 to $8, suggesting significant upside potential. Investors can track the company’s progress in its upcoming earnings report, scheduled for March 27, 2025.
In light of this strategic development, Chen has reiterated the Buy rating and adjusted the price target to $4, signaling confidence in Vivani Medical’s future performance and the potential benefits stemming from the spin-off of Cortigent.
In other recent news, Vivani Medical, Inc. has announced the spin-off of its neurostimulation division, Cortigent, into an independent publicly traded company. This decision is intended to streamline Vivani’s business operations and maximize shareholder value by focusing on its core business of developing drug implants for chronic conditions. The spin-off is expected to be completed by the third quarter of 2025, subject to regulatory approvals, and Vivani stockholders will receive shares in the new entity. Meanwhile, Vivani has commenced the LIBERATE-1 clinical trial for its exenatide implant, aimed at treating obesity. The trial, which started in Australia, will evaluate the safety and effectiveness of the implant and is expected to report data by mid-2025. H.C. Wainwright has reaffirmed a Buy rating on Vivani, with a price target of $3.00, citing optimism around the LIBERATE-1 trial and the potential market impact of the NPM-115 drug candidate. The trial involves an eight-week pre-treatment phase with semaglutide injections before participants are randomized into different treatment groups. Vivani plans to use the trial data to support regulatory submissions in various regions, including the United States.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.