Trump announces trade deal with EU following months of negotiations
On Tuesday, Stifel analysts maintained their Buy rating and an $8.00 price target for Rani Therapeutics Holdings (NASDAQ:RANI), highlighting the company’s commitment to advancing its RT-114 drug candidate. With the stock currently trading at $1.21, near its 52-week low, and analyst targets ranging from $8 to $17, InvestingPro analysis suggests the stock may be undervalued despite recent market challenges. The analysts noted that RT-114, a GLP-1/GLP-2 dual agonist, has shown promising results in preclinical studies. These studies demonstrated that RT-114, when delivered orally via Rani’s proprietary RaniPill, has bioequivalence with a 111% relative bioavailability compared to the subcutaneous form PG-102, which is led by ProGen. For investors seeking deeper insights, InvestingPro offers comprehensive analysis of Rani’s financial health and growth prospects, with over 10 additional ProTips available.
Stifel analysts pointed out that RT-114 could offer several advantages over other oral anti-obesity medications (AOMs), including a novel mechanism of action (MoA) that allows for muscle-sparing weight loss, the convenience of once-weekly oral administration, lower variability compared to injectables, and high tolerability that permits rapid titration. In the competitive landscape of obesity treatments, RT-114 stands out as the only oral GLP-1/GLP-2 in development, a less crowded MoA compared to other drugs in this category.
Rani Therapeutics has previously validated its RaniPill delivery system with multiple drugs, including RT-116/semaglutide. The company is set to advance RT-114 into a two-month Phase 1 clinical trial in the middle of the year. The analysts emphasized the importance of efficient execution of the RT-114 Phase 1 trial, especially considering that Rani Therapeutics’ financial runway is projected to last only until the third quarter of 2025, and with other programs currently on hold. According to InvestingPro data, the company’s financial position shows an EBITDA of -$50.8M and a current ratio of 1.6, highlighting the importance of successful trial execution for this $69.49M market cap company.
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 introduced its first contract revenue of $1 million in 2024, and research and development expenses decreased significantly by $12.9 million. Rani Therapeutics concluded the quarter with $27.6 million in cash and equivalents, which is expected to support operations into the third quarter of 2025. Despite these improvements, the company’s earnings per share of -0.27 slightly missed the forecast of -0.26, reflecting ongoing challenges in achieving profitability.
BTIG maintained a Buy rating on Rani Therapeutics with a price target of $14, highlighting the potential of Rani’s RT-114 in the oral obesity treatment market. The RaniPill technology, which includes RT-114, is noted for its improved tolerability and lower manufacturing costs compared to other treatments. A Phase 1 trial for RT-114 is scheduled to begin in mid-2025, targeting obese patients with a body mass index (BMI) between 30 and 39.9 kg/m². The company is actively exploring new opportunities in obesity, immunology, and rare diseases, with potential international market expansion.
Rani Therapeutics’ strategic partnership with Progen Co Limited for the co-development and commercialization of RT-114 is seen as a significant advancement in their pipeline. This partnership aims to combine a potential best-in-class GLP-1/GLP-2 asset with the convenience and dosing flexibility of the RaniPill. The company continues to focus on cost containment and efficiency, as evidenced by the reduction in both research and development and general and administrative expenses.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.