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Investing.com - Brookline Capital Markets downgraded Rein Therapeutics (NASDAQ:RNTX) from Buy to Hold on Tuesday, citing concerns over clinical trial delays and funding challenges. The stock, currently trading at $1.13, has declined over 53% in the past six months, according to InvestingPro data.
The downgrade follows what Brookline described as a "disappointing" second-quarter update from the biopharmaceutical company. Rein Therapeutics, with a market capitalization of $26 million, is still awaiting a meeting with the FDA regarding the clinical hold placed on its Phase 2 RENEW trial.
The FDA has requested Rein Therapeutics conduct a new rat trial, which Brookline estimates could delay the RENEW trial by up to 10 months. The RENEW study is designed to evaluate the safety and efficacy of LTI-03 in patients diagnosed with idiopathic pulmonary fibrosis (IPF).
Brookline expressed specific concerns about Rein’s lack of sufficient funding to restart its Phase 2 trial in the United States and the company’s ability to raise the approximately $40 million needed to run the study with the current regulatory overhang.
In addition to the downgrade from Buy to Hold, Brookline Capital Markets has suspended its price target for Rein Therapeutics stock.
In other recent news, Rein Therapeutics has secured strategic financing agreements with Yorkville Advisors Global, LP, providing the company with access to up to $21 million in capital. This financing package includes a $6 million pre-paid advance agreement, with an initial $1 million funded at the time of signing. Additionally, Rein Therapeutics has the option to utilize a $15 million standby equity purchase agreement over the next 36 months, contingent on an effective registration statement. These developments are aimed at supporting the company’s clinical development programs.
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