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Investing.com - Chardan Capital Markets lowered its price target on Prime Medicine (NASDAQ:PRME) to $10.00 from $12.00 on Thursday, while maintaining a Buy rating following the company’s second-quarter results. According to InvestingPro data, analyst targets for PRME range from $1.50 to $12.00, with the stock currently trading at $3.79.
Prime Medicine reported its second-quarter 2025 financial results on August 7, ending the period with $115.4 million in cash and equivalents, down from $158.3 million at the end of the first quarter. The company’s financial health score on InvestingPro is currently rated as ’Weak’, with a current ratio of 3.56x indicating adequate short-term liquidity.
The company significantly strengthened its financial position last week by closing an offering of 43.7 million shares at $3.30 per share, generating net proceeds of $138.2 million, which included a $6 million equity investment from the Cystic Fibrosis Foundation.
With these additions, Prime Medicine reports a pro forma cash position of $259.6 million, which it expects will fund operations into 2027, extending from the previous runway of first half 2026 that was projected in May 2025.
Chardan noted that the improved cash position alleviates near-term funding concerns and should enable Prime Medicine to advance its in vivo liver-directed prime editing programs for Wilson’s disease and alpha-1 antitrypsin deficiency into clinical trials in 2026.
In other recent news, Prime Medicine has announced a public offering of its common stock. The company has commenced an underwritten public offering, with plans to grant underwriters a 30-day option to purchase up to an additional 15% of the shares offered. All shares in this offering will be sold by Prime Medicine, although the completion and terms are subject to market conditions. Additionally, Prime Medicine has secured up to $24 million in funding from the Cystic Fibrosis Foundation to enhance the development of therapies for cystic fibrosis. This funding will be provided in two tranches, with the first tranche including a $6 million equity investment. JMP Securities has reiterated its Market Outperform rating and maintained a $6.00 price target for Prime Medicine following this funding announcement. Meanwhile, H.C. Wainwright has reiterated its Neutral rating on the company after the expanded partnership with the Cystic Fibrosis Foundation. These developments highlight Prime Medicine’s ongoing efforts in advancing its genetic therapies.
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