On Monday, H.C. Wainwright adjusted its price target for Nyxoah SA (NASDAQ: NYXH), a medical technology company, to $17.00 from the previous $18.00. Despite this change, the firm maintains a Buy rating on the stock. The revision follows the company's recent capital raise of $27 million through the sale of 3.0 million shares.
The capital raise occurred on Friday, October 7, 2024, with the shares being sold at the market price on the Nasdaq at the time of the sale. This move is part of Nyxoah's at-the-market offering, which aims to raise a total of $50 million. The additional funds are expected to support the company as it gears up for the potential commercial launch of its product, Genio, in the U.S. market.
As of June 30, 2024, Nyxoah reported having cash and equivalents of €77.8 million. In addition, the company secured a €37.5 million loan facility agreement on July 3, 2024, and received the first tranche of €10 million on July 26, 2024. These financial maneuvers indicate Nyxoah's efforts to strengthen its balance sheet in preparation for upcoming business developments.
H.C. Wainwright's analyst noted the importance of the capital raise and the subsequent dilution in their financial model. The firm's reiteration of the Buy rating suggests they remain optimistic about Nyxoah's prospects, despite the adjusted price target. The company's financial strategy appears to be focused on ensuring sufficient resources for the anticipated U.S. commercial launch of its Genio system.
In other recent news, Nyxoah SA has seen significant progress in its DREAM U.S. pivotal study, with successful primary endpoints indicating a promising outlook for Obstructive Sleep Apnea (OSA) patients. The company has completed its Pre-Market Approval (PMA) submission and anticipates FDA approval for its Genio system by late 2024 or early 2025. In financial developments, Nyxoah revealed a 29% increase in European sales and a successful capital raise of over EUR 85 million, extending its financial runway into mid-2026, despite an operating loss of EUR 13.3 million for Q2 2024.
H.C. Wainwright and Stifel have both maintained their Buy ratings on Nyxoah shares, targeting $18.00, following the presentation of additional data from the DREAM study. The firms highlighted the trial's demonstration of comparable efficacy in both supine and non-supine sleep positions as a significant positive development.
InvestingPro Insights
Recent InvestingPro data provides additional context to Nyxoah's financial position and market performance. The company's market capitalization stands at $340.67 million, reflecting investor sentiment following the recent capital raise. Nyxoah's revenue for the last twelve months as of Q2 2024 was $5.13 million, with a notable revenue growth of 57.79% over the same period. This growth aligns with the company's preparations for potential U.S. market entry.
InvestingPro Tips highlight that Nyxoah holds more cash than debt on its balance sheet, which supports H.C. Wainwright's observation about the company's efforts to strengthen its financial position. However, the tip also notes that Nyxoah is quickly burning through cash, underscoring the importance of the recent capital raise and loan facility agreement mentioned in the article.
Another relevant InvestingPro Tip indicates that Nyxoah's liquid assets exceed short-term obligations, which could provide some reassurance to investors about the company's ability to fund its operations in the near term. This information complements the article's discussion of Nyxoah's financial strategy as it prepares for potential commercial launch in the U.S. market.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could further inform investment decisions regarding Nyxoah.
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