Maxim Group upgrades Dare Bioscience stock to Buy on funding boost

Published 04/09/2025, 13:44
Maxim Group upgrades Dare Bioscience stock to Buy on funding boost

Investing.com - Maxim Group upgraded Dare Bioscience (NASDAQ:DARE) from Hold to Buy and set a price target of $8.00, citing the company’s recent capital raise that extends its cash runway into the second half of 2026. The stock, currently trading at $2.06, appears undervalued according to InvestingPro analysis, though it has declined 34% year-to-date.

The biotech company secured $17.6 million in net proceeds from its ATM offering in July 2025, along with a $6 million grant. This funding resolves immediate financing concerns and supports its planned launch of topical sildenafil through the 503(B) pathway in the fourth quarter of 2025. InvestingPro data shows the company’s current ratio of 0.34 indicates tight liquidity, with short-term obligations exceeding liquid assets.

Maxim Group notes that while revenue from the initial launch is expected to be modest, as the 503(B) pathway allows compounding pharmacies to sell reformulations rather than providing full approval, the launch represents a significant step toward building market awareness and generating real-world evidence.

The company will need to conduct Phase 3 studies to achieve full approval for topical sildenafil, which will likely require additional funding beyond the current cash reserves that support both the initial product launch and the ongoing Phase 3 Ovaprene study.

The investment firm views the upcoming commercial launch as an important milestone that enhances visibility and validates the commercial opportunity for Dare Bioscience’s products. With a market cap of $27.15 million and analyst targets ranging from $11 to $12, comprehensive analysis and additional insights are available in the InvestingPro Research Report, which provides deep-dive coverage of DARE among 1,400+ US stocks.

In other recent news, Dare Bioscience reported its second-quarter 2025 earnings, highlighting a significant boost in cash through financial activities. The company raised $17.6 million via stock sales and received a $6 million grant after the quarter ended, despite facing a working capital deficit of $12.6 million. These financial maneuvers are part of Dare’s ongoing strategy to support its product developments and launches. Additionally, Dare Bioscience continues to advance several products, including Sildenafil Cream, DARE-HRT1, and two vaginal probiotics, although details about partnerships and strategies remain undisclosed.

Brookline Capital Markets has adjusted its price target for Dare Bioscience from $14.00 to $11.00 while maintaining a Buy rating. This adjustment follows the company’s second-quarter update, which Brookline described as less informative than anticipated. The firm noted Dare’s ongoing plans to bring products to market through the 503B pathway, but highlighted the absence of expected details about 503B partners. These developments reflect Dare Bioscience’s strategic focus on expanding its presence in women’s health solutions.

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