On Monday, H.C. Wainwright maintained a Buy rating on Dare Bioscience (NASDAQ: DARE) shares, with a steady price target of $12.00. The firm's endorsement follows Dare's recent announcement that it has been chosen to receive up to $10 million from ARPA-H's Sprint for women's health.
The award is to support the development of the company's DARE-HPV program, which has the potential to be the first FDA-approved treatment for late-stage cervical lesions and earlier stage HPV-related cervical infections.
The funding from ARPA-H is tied to achieving certain milestones, which include completing IND enabling nonclinical studies, obtaining IND clearance, reaching manufacturing milestones, and beginning a Phase 2 study. Dare Bioscience indicated that more than half of the award is expected to be payable within the first 12 months of the performance period, contingent on the company's satisfactory progress.
The analyst from H.C. Wainwright highlighted this funding as a testament to Dare's ability to innovate and secure non-dilutive funding to further its programs. This approach is seen as one of the company's core strengths and is anticipated to contribute to building long-term shareholder value. The firm reiterated its Buy recommendation for Dare Bioscience shares based on these developments.
In other recent news, Dare Bioscience has secured a $15 million funding agreement with Lincoln Park Capital Fund, potentially supporting the advancement of Sildenafil Cream, a potential treatment for female sexual arousal disorder.
The company's Sildenafil Cream has shown promise in recent Phase 2b clinical trials, demonstrating safety and tolerability. Furthermore, the RESPOND study suggests that both 1-month and 24-hour recall patient-reported outcome instruments could effectively measure treatment efficacy in future clinical studies.
Dare Bioscience has also reported a decrease in general and administrative expenses and research and development expenses. In terms of funding, the company has secured additional resources through a royalty monetization transaction and a grant agreement, which will aid in the development of DARE-LARC1, an investigational contraceptive.
These recent developments reflect Dare Bioscience's commitment to advancing their product candidates while managing capital responsibly.
InvestingPro Insights
Recent InvestingPro data provides additional context to Dare Bioscience's financial situation and market performance. The company's market capitalization stands at $30.94 million, reflecting its current valuation in the biotech sector.
Despite the positive news about the ARPA-H funding, InvestingPro Tips reveal that Dare is "quickly burning through cash" and "suffers from weak gross profit margins." These insights align with the company's focus on securing non-dilutive funding, as highlighted in the article.
The company's financial health is further illuminated by its negative gross profit of -$18.81 million and an operating income of -$26.75 million for the last twelve months as of Q2 2024. An InvestingPro Tip notes that analysts do not anticipate the company to be profitable this year, which underscores the importance of the recent funding award for Dare's ongoing operations and development programs.
Interestingly, despite these financial challenges, Dare's stock has shown some positive momentum with a 12.07% price return over the past month. This could be indicative of market optimism surrounding the company's recent developments, including the ARPA-H funding announcement.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Dare Bioscience, providing a deeper understanding of the company's financial position and market prospects.
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