Rodman & Renshaw sets PolyPid stock at Buy with $13 target

On Tuesday, Rodman & Renshaw initiated coverage on PolyPid Ltd. (NASDAQ:PYPD), a late-stage biopharmaceutical company, with a Buy rating and a price target of $13.00. PolyPid specializes in the controlled and prolonged release of therapeutic drugs, aiming to provide sustained delivery over extended periods ranging from days to months.

The company's leading product, D-PLEX100, is in Phase 3 clinical trials for the prevention of abdominal colorectal surgical site infections (SSIs). PolyPid announced in December 2024 its expectation to complete enrollment for the trial in the first quarter of 2025, with topline results projected for the second quarter of the same year. With a market capitalization of just $21.43 million and an overall Financial Health score of "FAIR" according to InvestingPro, investors should note that the company is currently burning through cash rapidly.

In addition to D-PLEX100, PolyPid is developing OncoPLEX, a preclinical asset intended for the treatment of solid tumors, initially focusing on glioblastoma. The research firm highlighted the potential of both D-PLEX100 and OncoPLEX, suggesting that PolyPid offers an attractive investment opportunity within the biopharma market due to its strong clinical prospects and unique drug delivery platform.

The analysts at Rodman & Renshaw believe that D-PLEX100 will be a key driver of value for PolyPid's stock. They anticipate that forthcoming data readouts could lead to an increase in the stock's value. The price target reflects the firm's confidence in PolyPid's clinical progress and the anticipated positive outcomes from the ongoing trials.

In other recent news, PolyPid's Q3 2024 earnings call emphasized the company's progress in clinical trials and strategic financial positioning. Despite reporting a net loss of $7.8 million, an increase from the previous year, the company remains hopeful about its future, driven by its DPLEX-100 product for surgical site infections. PolyPid is advancing its SHIELD-II trial with promising enrollment rates, and aims for a breakthrough therapy designation for DPLEX-100. Furthermore, the company has extended its financial runway to Q1 2025, with a potential extension to 2026.

PolyPid's CEO, Dikla Chotchis Axelrad, highlighted the company's strong financial position and the global need for DPLEX-100. The company's future outlook is bolstered by the potential for additional funding through warrant exercises. PolyPid anticipates submitting a New Drug Application (NDA) in 2026 and is actively seeking a strategic commercialization partner in the U.S. These are recent developments that demonstrate the company's focus on innovation and global market expansion, and its commitment to navigate financial and regulatory challenges to achieve its long-term goals.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.