On Wednesday, Brookline Capital Markets changed its stance on Dare Bioscience (NASDAQ: DARE) stock, upgrading from Hold to Buy and setting a price target of $3.00.
The biopharmaceutical company, which focuses on women’s health, has recently obtained $22 million in non-dilutive funding through a royalty monetization deal with XOMA.
The first-quarter update from Dare Bioscience highlighted the company’s strategy to concentrate on its late-stage assets, which are expected to generate value using the current funding.
One of the company’s key projects, the Ovaprene pivotal trial, is actively enrolling participants. Updates on the trial are anticipated throughout the year, and the project is said to require minimal additional capital to reach its readout stage.
Dare Bioscience is also in the final stages of discussions with the FDA regarding the Phase 3 trial for Sildenafil Cream, 3.6%, a potential treatment for female sexual arousal disorder.
The company expects to receive feedback from the FDA in the second quarter of 2024. While preparations for the trial are proceeding, management has indicated a willingness to postpone the trial’s initiation if funding becomes uncertain.
The upgrade reflects the analyst’s confidence in the company’s direction and the potential of its late-stage assets. The price target suggests a positive outlook for the stock’s performance.
InvestingPro Insights
Following the optimistic upgrade from Brookline Capital Markets, InvestingPro data and tips offer additional perspectives on Dare Bioscience’s financial health and market position. Notably, the company holds more cash than debt, a reassuring sign of financial stability, as reflected in the recent non-dilutive funding success. Analysts on InvestingPro also expect sales growth in the current year, which could align with the company’s focus on late-stage assets like the Ovaprene pivotal trial and the upcoming FDA feedback on Sildenafil Cream.
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However, it’s important for investors to consider that Dare Bioscience is quickly burning through cash, with short-term obligations exceeding its liquid assets. This financial strain underscores the company’s decision to potentially postpone the initiation of the Phase 3 trial for Sildenafil Cream if funding becomes uncertain. The market cap stands at a modest $31.68M, and with a negative P/E ratio of -0.92 for the last twelve months as of Q4 2023, the company’s profitability challenges are evident. Furthermore, the stock has experienced a significant price drop over the last year, with a 1 Year Price Total Return of -68.81%.
While the company’s stock has fared poorly over the last month, with a 1 Month Price Total Return of -34.39%, investors might find the long-term potential compelling if Dare Bioscience can successfully navigate its financial challenges and capitalize on its late-stage assets. For those looking to delve deeper into Dare Bioscience’s potential, InvestingPro offers additional insights and metrics. For more InvestingPro Tips on Dare Bioscience, visit https://www.investing.com/pro/DARE and consider using coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 11 more tips available on InvestingPro that could further inform investment decisions.
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