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On Wednesday, Mizuho (NYSE:MFG) Securities reiterated its Neutral rating and $1.00 price target for Relmada Therapeutics Inc (NASDAQ:RLMD), which currently trades at $0.32 with a market capitalization of $9.67 million. According to InvestingPro data, analyst price targets range from $0.60 to $1.00, suggesting potential upside. The reiteration follows Relmada’s recent announcement of acquiring a new pipeline asset, NDV-01, for the treatment of non-muscle invasive bladder cancer (NMIBC), which represents a multi-billion-dollar opportunity.
The licensing deal with Trigone for NDV-01 involves a relatively small upfront payment of $3.5 million and the issuance of approximately 3 million Relmada shares. These shares equate to roughly 10% of the currently outstanding shares, valued at approximately $1 million. NDV-01 is a combination of two well-known drugs, gemcitabine and docetaxel, but with a new intravesicular sustained-release formulation. This novel formulation could offer significant advantages over the current treatment regimen, which is considered burdensome for patients. InvestingPro analysis shows the company maintains a strong current ratio of 6.89, with more cash than debt on its balance sheet, providing financial flexibility for this development program.
Patients currently have to fill their bladders with the drug fluid and avoid urinating for several hours to ensure the drugs are effective. The new sustained-release dosing of NDV-01 could lead to substantially higher efficacy by maintaining sustained drug exposure. This need for improved treatment options is underscored by similar efforts from Johnson & Johnson (JNJ), which is not covered by Mizuho, with their TAR-200 system.
Relmada’s NDV-01 has the potential to be a highly attractive asset for the company, with several upcoming milestones that could increase the value of the stock. The next significant data readout for NDV-01 is expected in April 2025, which could serve as a catalyst for the company’s share price. The deal and the potential of NDV-01 highlight Relmada’s commitment to expanding its pipeline and addressing unmet medical needs in the oncology space.
In other recent news, Relmada Therapeutics, Inc. announced an exclusive licensing agreement with Trigone Pharma for NDV-01, a potential treatment for Non-Muscle Invasive Bladder Cancer, involving a $3.5 million upfront payment and additional milestone payments. The company also acquired Sepranolone from Asarina Pharma for EUR 3 million, aiming to use it as a first-line treatment for Tourette syndrome, with promising Phase 2a data suggesting a robust safety profile. Mizuho analysts maintained a Neutral rating on Relmada, seeing potential in the Sepranolone acquisition, and noted the company’s financial stability to fund upcoming trials. Relmada is facing a potential Nasdaq delisting due to non-compliance with the minimum bid price requirement but has a 180-day period to rectify the situation. Additionally, Relmada appointed Paul Kelly as Chief Operating Officer and announced a freeze on executive pay raises and bonuses for fiscal 2024. The company has also suspended retention payments for its executives, which were initially approved in August 2024. These developments reflect Relmada’s ongoing efforts to enhance its treatment portfolio and maintain financial stability.
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