On Thursday, Chardan Capital Markets revised its stance on Outlook Therapeutics, Inc. (NASDAQ:OTLK), elevating the stock from a Neutral to a Buy rating and setting a price target of $3.00. The biopharmaceutical company, which focuses on the development of complex monoclonal antibodies, has recently reported its financial results for the first fiscal quarter of 2024, which concluded on December 31, 2023.
Outlook Therapeutics finished the quarter with $10.4M in cash. In January, the company announced a significant private placement that could yield approximately $160M in gross proceeds. This includes $60M from the sale of common stock and the potential for an additional $100M upon the exercise of warrants. The transaction is expected to finalize in March, pending stockholder approval.
The anticipated capital from the private placement and subsequent exercise of the related warrants is projected to sufficiently fund the completion of the NORSE 8 trial. Additionally, the funds are expected to enable the resubmission of the Biologics License Application (BLA) for Lytenava, Outlook Therapeutics' proprietary ophthalmic formulation, and support its commercial launch, pending regulatory approval.
Chardan Capital Markets expressed optimism about the company's prospects, citing the resolution of financial uncertainties and clear regulatory guidelines for the resubmission of the Lytenava BLA. The analyst's comment highlighted these developments as key factors contributing to the improved risk-reward profile for Outlook Therapeutics, warranting the upgraded rating and price target.
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