On Friday, Roth/MKM initiated coverage on Cingulate (NASDAQ:CING), a pharmaceutical company with a market capitalization of $13.84 million, assigning a Buy rating to the stock. The firm has set a price target of $12.00, significantly above the current trading price of $4.31, indicating a positive outlook for the company's financial future. According to InvestingPro data, analyst targets for the stock range from $8.00 to $75.00.
The analyst at Roth/MKM, Boobalan Pachiyappan, based the optimistic assessment on a Discounted Cash Flow (DCF) analysis. The analyst's confidence is bolstered by the promising Phase 3 data of Cingulate's CTx-1301, which has shown to be effective for approximately 16 hours in patients with Attention Deficit Hyperactivity Disorder (ADHD).
The United States Target (NYSE:TGT) Addressable Market (TAM) for ADHD is estimated to be around 17 million individuals. InvestingPro subscribers can access 10+ additional investment tips and detailed financial metrics for comprehensive analysis.
Cingulate's current financial position, with a pro forma cash balance of approximately $15 million, is expected to sustain the company into the third quarter of 2025. With a strong current ratio of 7.35 and more cash than debt on its balance sheet, the company maintains solid short-term liquidity. The potential for near-term dilution is acknowledged, yet it is believed to be offset by the anticipated New Drug Application (NDA) filing for CTx-1301 in mid-2025.
The analyst further projects that CTx-1301 could achieve sales of $1.6 billion by the year 2035, indicating a significant revenue potential for Cingulate.
This drug's industry-leading average effect size in treating ADHD could position it as a strong contender in the market, contributing to the optimistic price target and rating. The stock, which has shown a negative beta of -0.86, tends to move counter to market trends, potentially offering portfolio diversification benefits.
In other recent news, Cingulate Inc. has increased its At The Market (ATM) offering price from $15.2 million to $23.5 million, as part of its ongoing efforts to support its operations and development projects. The biopharmaceutical company has sold shares totaling approximately $11.3 million under the Sales Agreement with H.C. Wainwright & Co., LLC. In addition, the company has filed a prospectus supplement allowing for the sale of an additional $8.34 million worth of shares.
Cingulate Inc. has also recently raised approximately $11.7 million in capital, extending its operational runway into Q2 2025. This funding aligns with the company's preparation for the filing of a New Drug Application (NDA) for CTx-1301, targeted for potential FDA approval by mid-2025. The company's recent financial update reported cash and cash equivalents totaling approximately $10 million.
Furthermore, the company has regained compliance with Nasdaq's minimum bid price requirement and expanded its ATM offering by $3.87 million. In another development, Cingulate Inc. has secured a European patent for its lead product, CTx-1301, designed for the treatment of ADHD, extending the company's market reach to up to 30 European territories.
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