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On Friday, Oppenheimer’s analyst Andreas Argyrides adjusted the price target for Rani Therapeutics Holdings (NASDAQ:RANI) to $4.00, a significant decrease from the previous $14.00, while maintaining an Outperform rating on the stock. The stock, currently trading at $0.57, has experienced a dramatic 89.5% decline over the past year. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics. This revision follows Rani’s first-quarter earnings report and business update provided earlier in the week.
Rani Therapeutics, a biopharmaceutical company with a market capitalization of $32.8 million, is preparing to initiate a Phase 1 study for RT-114 by mid-2025. RT-114 is an innovative oral RaniPill containing PG-102, ProGen’s GLP-1/GLP-2 receptor agonist, which is being developed as a potential treatment for obesity. In March 2025, Rani shared promising preclinical data that demonstrated RT-114’s bioavailability is comparable to that of the subcutaneous version of the drug, PG-102, suggesting its effectiveness as an oral obesity treatment.
Further bolstering the company’s prospects, preclinical data presented in February 2025 showed similar bioavailability and weight loss when comparing subcutaneous semaglutide with the oral RaniPill. This comparison underlines the potential of Rani’s technology to provide an oral alternative for incretin-based therapies, which are typically administered via injection.
Argyrides highlighted the strategic shift in Rani Therapeutics’ focus towards the obesity market as a key value-driver for the company. The oral RaniPill’s potential advantages in tolerability and dosing flexibility could differentiate it in the competitive obesity treatment landscape. With Rani’s current financial runway extending into the third quarter of 2025 and a concerning current ratio of 0.88, the firm has chosen to prioritize the advancement of the RT-114 obesity program. InvestingPro data reveals 13 additional key insights about Rani’s financial health and market position, essential for understanding the company’s investment potential. Consequently, Oppenheimer has removed RT-111, a psoriasis treatment, from its valuation model, leading to the reduced price target.
In other recent news, Rani Therapeutics Holdings Inc. reported its financial results for the fourth quarter of 2024, revealing a net loss of $56.6 million, an improvement from $67.9 million in 2023. The company also introduced its first contract revenue of $1 million in 2024. Despite these improvements, the company missed earnings per share (EPS) expectations, posting an EPS of -0.27 compared to the forecast of -0.26. Rani Therapeutics is currently facing a potential delisting from the Nasdaq Stock Exchange due to non-compliance with the minimum Market Value of Listed Securities (MVLS) threshold of $50 million. The company has until October 28, 2025, to regain compliance.
On the analyst front, Stifel and BTIG have both maintained their Buy ratings on Rani Therapeutics, with price targets of $8.00 and $14.00, respectively. Stifel analysts highlighted the potential of Rani’s RT-114 drug candidate, noting its promising preclinical results and potential advantages over other oral anti-obesity medications. BTIG’s analyst also emphasized RT-114’s improved tolerability and lower manufacturing costs, which could enhance patient adherence and access.
Rani Therapeutics is advancing its RT-114 into a two-month Phase 1 clinical trial scheduled for mid-2025. This trial will assess the drug’s efficacy in obese patients, measuring changes in body weight. The company concluded the fourth quarter with $27.6 million in cash and equivalents, expected to support operations into the third quarter of 2025.
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