Lucid files for 1-for-10 reverse stock split requiring shareholder approval
In a challenging year for biotech firms, Denali Therapeutics Inc. (NASDAQ:DNLI) stock has touched a 52-week low, dipping to $12.05, with InvestingPro data showing a steep 55% decline over the past six months. The stock currently trades at $11.71, near its Fair Value according to InvestingPro analysis. The company, known for its pioneering work in the development of treatments for neurodegenerative diseases, has seen its shares tumble nearly 40% over the past year. This significant downturn reflects a broader trend in the sector, where investor confidence has been shaken by regulatory hurdles and a shift in market focus. Despite the promising science behind Denali’s pipeline and strong financial health indicators - including a robust current ratio of 8.46 and more cash than debt on its balance sheet - the market’s response has been unforgiving. Analyst targets range from $24 to $80, suggesting potential upside. (InvestingPro subscribers can access 10+ additional insights about DNLI’s financial health and future prospects.)
In other recent news, Denali Therapeutics has initiated a rolling submission for a biologics license application (BLA) for tividenofusp alfa, a potential treatment for Hunter syndrome, with the U.S. Food and Drug Administration. The company aims to complete this submission by the first half of May 2025, targeting a U.S. market launch in late 2025 or early 2026. Denali’s efforts are further supported by the European Medicines Agency’s Priority Medicines designation and the FDA’s Fast Track and Breakthrough Therapy designations. Morgan Stanley (NYSE:MS) analysts have initiated coverage of Denali with an Overweight rating, citing confidence in the company’s enzyme transport vehicle platform. H.C. Wainwright has adjusted its price target for Denali to $80, maintaining a Buy rating, while Deutsche Bank (ETR:DBKGn) has set a $31 target with a Buy rating, noting the company’s favorable risk/reward balance. Stifel analysts have reiterated their Buy rating with a $37 target, highlighting discussions with Denali’s CEO about promising developments. These developments suggest a critical period ahead for Denali, with various key events anticipated throughout 2025.
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