On Monday, H.C. Wainwright adjusted its outlook on Applied DNA Sciences (NASDAQ:APDN) shares, reducing the price target to $1.50 from the previous $7.00, yet the firm continues to endorse the stock with a Buy rating. The revision follows a recent announcement by Applied DNA Sciences regarding a significant development in its intellectual property portfolio.
Last week, the company revealed it had received a Notice of Allowance from the U.S. Patent and Trademark Office for a patent application concerning its Linea RNAP enzyme composition.
This allowance is poised to extend the patent's life until 2041. Linea RNAP is integral to the company's Linea IVT platform, which aids mRNA manufacturers in producing higher-quality mRNA more efficiently, with a process that minimizes contamination from double-stranded RNA.
The company is actively working on the development and implementation of new quality systems for Good Manufacturing Practice (GMP) to satisfy customer demands for clinical-stage mRNA therapy development. These advancements are part of its broader strategy to strengthen its position in the mRNA production sector.
Despite the reduced price target, the firm's valuation of Applied DNA Sciences remains set at $28 million. The updated valuation reflects an increase in the projected number of shares outstanding to 20.3 million by the end of June 2025, which results in a per-share value of $1.50. H.C. Wainwright reaffirms its confidence in the stock's potential with a continued Buy rating, even as the 12-month price target has been adjusted downward.
In other recent news, Applied DNA Sciences has secured a patent for its RNA synthesis technology, Linea™ RNAP, a key component of the company's Linea™ IVT platform.
This development coincides with the company's recent public offering, which is expected to generate approximately $12 million in gross proceeds. The funds will be used to expand its Therapeutic DNA Production Services and MDx Testing Services.
In strategic collaborations, Applied DNA has partnered with HDT Bio to expedite vaccine production and with Alphazyme LLC to scale up the production of the Linea™ RNA polymerase. The company also confirmed a 1-for-20 reverse stock split of its common stock, aimed at ensuring compliance with the Nasdaq's minimum bid price requirement.
These developments suggest that Applied DNA is expanding its role in the field of mRNA production with its patented technology and strategic partnerships. The company's recent actions indicate a focus on increasing its market share in the mRNA therapeutics sector and maintaining its position on the Nasdaq. However, these are recent developments and it remains to be seen how these decisions will impact the company's future operations.
InvestingPro Insights
As Applied DNA Sciences (NASDAQ:APDN) navigates its way through the biotech industry with developments in its intellectual property, investors are keeping a keen eye on the financial health and market performance of the company. With a Market Cap of just 5.52M USD and a significant Revenue Growth decline of -68.52% in the last twelve months as of Q2 2024, the company's financial situation reflects the challenges faced in the sector. The stock's Price, Previous Close at 0.54 USD, further underscores the market's current stance on APDN, which has seen a 1 Month Price Total Return of -84.35% as of the same period.
InvestingPro Tips suggest that APDN holds more cash than debt, potentially providing some financial flexibility, while the RSI indicates the stock is in oversold territory, which could interest value-seeking investors. However, the company is quickly burning through cash, and analysts do not anticipate profitability this year, reflecting a cautious outlook. For those considering APDN's potential, there are additional tips available on InvestingPro that could provide deeper insights into the stock's prospects. With the use of promo code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of data and analysis to inform their investment decisions.
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