On Thursday, H.C. Wainwright maintained a positive outlook on Rani Therapeutics Holdings, Inc. (NASDAQ: RANI), reiterating a Buy rating and a price target of $9.00. The firm's endorsement follows Rani's announcement of encouraging preclinical pharmacokinetic data for its obesity candidate, which uses a novel delivery method akin to the company's proprietary RaniPill technology.
Rani Therapeutics recently shared new data from a preclinical study that evaluated a combination of metabolic hormones with a delivery system designed to emulate the RaniPill's oral administration path. This study highlighted the potential of the oral delivery method, which in previous research, showed pharmacodynamic effects on par with subcutaneous injections.
The company has also completed a separate study demonstrating the effective oral delivery of a GLP-1 receptor agonist through the RaniPill capsule, which achieved high bioavailability. This progress underpins Rani's continued efforts to develop innovative treatments for obesity.
Looking forward, Rani Therapeutics is gearing up to initiate a Phase 1 trial for RT-114, which is a capsule containing a dual-agonist for GLP-1 and GLP-2, named PG-102. Alongside this, the company is assessing strategic opportunities to advance additional molecules within the obesity treatment space.
The analyst's statement underscored the significance of the positive preclinical results and the company's strategic focus on developing its pipeline. The reiterated Buy rating and $9.00 price target reflect confidence in Rani's potential to make strides in the obesity treatment market.
In other recent news, Rani Therapeutics announced promising results from a preclinical study, which indicated that its RaniPill platform could effectively administer obesity treatments orally. The biotherapeutics company also secured approximately $10 million through a registered direct offering, which will support the continued development of its RaniPill capsule technology. Rani Therapeutics has also entered a collaboration with South Korean biotech firm, ProGen Co., Ltd., to co-develop and commercialize RT-114, an oral therapeutic for obesity.
In terms of financial performance, Rani Therapeutics reported a Q2 net loss of $0.51 per share. Following this, H.C. Wainwright adjusted its 12-month price target for the company from $13 to $9, while maintaining a Buy rating. Stifel and Canaccord Genuity also maintained their Buy ratings on the company, despite adjustments in their price targets.
In a significant shift, Rani Therapeutics appointed Marcum LLP as its new independent registered public accounting firm, replacing Ernst & Young LLP. No disagreements were reported on matters of accounting principles, practices, financial statement disclosure, or auditing procedures leading up to the change.
InvestingPro Insights
Recent InvestingPro data provides additional context to Rani Therapeutics' financial position and market performance. Despite the positive outlook from H.C. Wainwright, the company faces some financial challenges. InvestingPro Tips indicate that Rani is quickly burning through cash and is not profitable over the last twelve months. This aligns with the company's reported adjusted operating income of -$57.85 million for the last twelve months as of Q2 2023.
However, the market seems to be responding positively to recent developments. Rani has seen a significant return of 30.2% over the last week and a strong return of 14.35% over the last month. This recent uptick could be attributed to the encouraging preclinical data and the company's strategic focus on obesity treatments, as mentioned in the article.
It's worth noting that analysts do not anticipate the company to be profitable this year, which is consistent with the nature of biotech companies in the development stage. The company's Price to Book ratio stands at a high 49.54, reflecting investor optimism about future prospects despite current financial challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 5 more InvestingPro Tips available for Rani Therapeutics, which could provide valuable context for understanding the company's financial health and market position.
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