Wells Fargo initiates Milestone Pharmaceuticals stock with Overweight rating

Published 11/09/2025, 11:10
Wells Fargo initiates Milestone Pharmaceuticals stock with Overweight rating

Investing.com - Wells Fargo initiated coverage on Milestone Pharmaceuticals (NASDAQ:MIST) with an Overweight rating and a $4.00 price target on Thursday. The $167 million market cap company currently trades at $1.71, with analyst targets ranging from $1 to $5.

The pharmaceutical company is developing Etripamil, a nasal-administered, short-acting calcium channel blocker for the treatment of PSVT (paroxysmal supraventricular tachycardia), a condition causing faster-than-normal heartbeat due to electrical signaling abnormalities in the heart. According to InvestingPro analysis, while the company is quickly burning through cash, its strong liquidity position with a current ratio of 4.97 provides some cushion for development activities.

Wells Fargo views Etripamil as highly differentiated compared to the standard of care, with potential to become a key drug for acute PSVT treatment, citing the drug’s Phase 3 RAPID trial results showing 64% conversion to normal heart rate compared to 31% for placebo. With a relatively low beta of 0.6, the stock shows lower volatility compared to the broader market. InvestingPro subscribers have access to 5 additional key tips about MIST’s financial health and growth prospects.

The firm highlighted Etripamil’s early onset of action and easy nasal administration compared to current oral medications, making it potentially suitable for home self-administration, which could reduce emergency room visits.

Wells Fargo also noted Milestone’s focused market strategy and strong commercial preparedness as positive factors for the eventual product launch.

In other recent news, Milestone Pharmaceuticals has priced its public offering at $1.50 per share, aiming to raise approximately $52.5 million before expenses. The offering includes 31.5 million common shares with Series A and Series B warrants, along with pre-funded warrants for certain investors. This development follows the company’s announcement of the public offering, which led to a significant stock price decline. Additionally, the U.S. Food and Drug Administration has set a December 13, 2025, action date for Milestone’s CARDAMYST nasal spray, following a response to a Complete Response Letter. The company has also extended a $75 million royalty purchase agreement with RTW Investments through the end of 2025, which will support the potential commercial launch of CARDAMYST pending FDA approval. Milestone Pharmaceuticals has resubmitted its filing for the CARDAMYST nasal spray, addressing specific Chemistry, Manufacturing, and Controls issues noted by the FDA. These issues include information on nitrosamine impurities and an inspection requirement at a testing facility that changed ownership.

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