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Investing.com - H.C. Wainwright has reiterated a Buy rating on Processa Pharmaceuticals (NASDAQ:PCSA) with a price target of $2.00, following the company’s comprehensive portfolio update earlier this week. The target represents significant upside potential from the current price of $0.19, though InvestingPro data shows the stock has declined over 89% in the past year. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels.
Processa continues to prioritize clinical development of its lead oncology asset, NGC-Cap, while also designing a new adaptive pivotal Phase 3 study for PCS499 in rare kidney diseases based on preliminary positive results and FDA approval of surrogate endpoints. The company plans to discuss this study with regulators later this year and is establishing a dedicated subsidiary to hold PCS499, enhancing strategic flexibility for capital raising and partnership exploration. InvestingPro analysis reveals the company maintains a healthy current ratio of 2.93, with cash reserves exceeding debt levels, though it’s currently experiencing rapid cash burn.
Processa has signed a binding term sheet with privately-held Intact Therapeutics, granting an exclusive option to license its PCS12852 prokinetic agent for gastroparesis and related gastrointestinal motility disorders. The deal makes Processa eligible for up to $454 million in milestone payments, a 12% royalty on future sales, and a 3.5% equity stake in Intact.
The company continues to define and explore development strategies for PCS11T, its preclinical oncology asset based on the active metabolite of irinotecan. Processa has terminated the license agreement for PCS3117, returning rights to the original licensor after determining that advancing the asset would require excessive time and cost.
H.C. Wainwright analyst Raghuram Selvaraju maintained the firm’s Buy rating and 12-month price target of $2.00 for Processa Pharmaceuticals stock. With a market capitalization of just $4.94 million, the company’s financial metrics and growth potential deserve careful analysis. InvestingPro subscribers have access to 14 additional investment tips and comprehensive financial analysis tools to evaluate biotech investments like PCSA more effectively.
In other recent news, Processa Pharmaceuticals has reported several significant developments. The company recently announced an adjournment of its annual shareholder meeting due to a lack of quorum, with plans to reconvene on July 30, 2025. Additionally, Processa has entered into a binding term sheet with Intact Therapeutics for an exclusive option to license PCS12852, a drug developed for gastroparesis. This agreement could potentially yield $2.5 million in option exercise fees and up to $432.5 million in commercial milestone payments, excluding royalties and an equity stake in Intact.
In financial updates, H.C. Wainwright lowered its price target for Processa Pharmaceuticals from $6.00 to $2.00, while maintaining a Buy rating. This adjustment reflects recent equity financing and future cash needs. The company is also conducting a Phase 2 trial for NGC-Cap in treating advanced breast cancer, with interim data expected later this year. Furthermore, Processa presented updates on its cancer drug candidates, PCS6422 and PCS11T, at the 2025 ASCO Annual Meeting, highlighting advances in efficacy and safety for cancer treatments. These developments underscore Processa’s ongoing efforts in drug development and strategic partnerships.
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