Wainwright lifts Biora Therapeutics stock target, keeps Buy rating on Q3 report

Published 18/11/2024, 13:38
Wainwright lifts Biora Therapeutics stock target, keeps Buy rating on Q3 report

On Monday, H.C. Wainwright has raised the stock price target for Biora Therapeutics (NASDAQ:BIOR) to $23.00, up from the previous target of $15.00, while retaining a Buy rating on the stock. The adjustment follows Biora Therapeutics' third-quarter financial report released on November 14, which revealed an earnings per share (EPS) loss of ($5.04). This result was below both the firm's estimate of ($4.20) and the consensus estimate of ($3.85).

The company concluded the quarter with approximately $3.2 million in cash. During this period, Biora continued to develop its drug delivery device platforms. Noteworthy developments include progress on their NaviCap and BioJet programs. Biora presented BT-600 Phase 1 clinical trial data at the American College of Gastroenterology meeting, showcasing positive outcomes and receiving support from key opinion leaders.

The BioJet program also achieved advancements with the announcement of a new, smaller BioJet device, the 00-size BioJet. This device maintains the original's geochronology but features increased payload capacity, accommodating over 300 microliters and enabling delivery of up to 50 mg doses.

This capacity is particularly significant for molecules like antibodies that are difficult to concentrate. Biora has successfully tested the 00-size BioJet's trigger function both on the bench and in animal studies, with nearly perfect device performance.

The firm emphasized the ongoing business development interest in BioJet and the potential of both the NaviCap and BioJet platforms to improve drug delivery for a range of indications. The analyst maintained a positive outlook on the company, reiterating the Buy rating and adjusting the price target to $23, reflecting the changes post the 1-for-10 reverse stock split conducted last month.

In other recent news, Biora Therapeutics has made notable strides in its financial and operational activities. The company has announced a $3 million stock and warrant sale, which is expected to support the further development of its oral biotherapeutics platforms.

Concurrently, Biora Therapeutics has enacted a 10-for-1 reverse stock split and reduced the total number of authorized shares, aiming to increase the per-share trading price of the company's stock.

In terms of product development, Biora Therapeutics has reported significant progress in its BioJet Oral Delivery Platform, which is anticipated to replace traditional injections with a needle-free, oral method. The company expects to complete full functional testing of this device by the end of Q4 2024.

On the financial front, Biora Therapeutics has secured additional funding, bringing the total recent funding to $8 million. The company has also entered into several transactions, including a Convertible Notes Purchase Agreement and a Convertible Notes Exchange Agreement, aimed at restructuring its debt and providing capital for ongoing operations.

In terms of earnings, Biora Therapeutics reported positive Q2 2024 results, with earnings per share (EPS) of $0.18, surpassing negative estimates. These are among the recent developments for Biora Therapeutics, which continues to advance its innovative drug delivery technologies.

InvestingPro Insights

Recent data from InvestingPro paints a challenging picture for Biora Therapeutics (NASDAQ:BIOR). The company's market capitalization stands at a modest $7.8 million, reflecting the market's current valuation of its potential. Despite the optimistic price target set by H.C. Wainwright, InvestingPro Tips highlight several areas of concern that investors should consider.

One InvestingPro Tip notes that Biora is "quickly burning through cash," which aligns with the company's reported cash position of $3.2 million at the end of the third quarter. This cash burn rate is particularly critical given another tip indicating that "short-term obligations exceed liquid assets." These factors underscore the financial challenges Biora faces as it continues to develop its drug delivery platforms.

On a positive note, analysts anticipate sales growth in the current year, which could potentially improve the company's financial position. However, it's important to note that according to InvestingPro data, Biora's revenue for the last twelve months was only $0.89 million, with an operating income of -$60.87 million, highlighting the significant gap between current operations and profitability.

For investors considering Biora Therapeutics, it's worth noting that InvestingPro offers 17 additional tips that could provide further insights into the company's financial health and market position. These additional tips could be particularly valuable given the stock's recent performance, with InvestingPro data showing a one-month price total return of -50.7% and a year-to-date return of -84.3%.

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

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