On Monday, H.C. Wainwright reaffirmed its Buy rating and $60.00 price target for NASDAQ:URGN, UroGen Pharma. The firm's endorsement follows UroGen Pharma's successful public offering earlier in June, which involved the sale of 5 million ordinary shares and, alternatively, pre-funded warrants to purchase 1,142,857 ordinary shares at $17.50 per share or $17.499 per pre-funded warrant. With gross proceeds of approximately $107.5 million, before underwriting discounts, commissions, and estimated expenses, the net proceeds are anticipated to be around $100 million.
UroGen Pharma's recent financial maneuver granted underwriters the option to buy an additional 921,428 shares at the public offering price, minus underwriting discounts and commissions. This strategic move is expected to bolster the company's cash reserves to nearly $240 million by the midpoint of 2024, potentially extending its financial runway into late 2026 or early 2027, depending on operational performance.
The company's future, according to H.C. Wainwright, hinges on the commercial progression of Jelmyto, the anticipated approval and market reception of UGN-102, and the management of operating expenses, particularly sales, general, and administrative expenses related to the U.S. launch of UGN-102. The successful sales trajectory of Jelmyto could lead UroGen Pharma to a cash flow break-even point, potentially eliminating the need for further equity financing.
In other recent news, UroGen Pharma has launched an underwritten public offering of shares and pre-funded warrants, with TD Cowen and Guggenheim Securities acting as joint book-runners. The company also reported promising results from its Phase 3 ENVISION trial for UGN-102, a treatment for Low-Grade Intermediate-Risk Non-Muscle Invasive Bladder Cancer, demonstrating an 82.3% Duration of Response at the 12-month mark. Following these results, several firms have adjusted their stance on UroGen Pharma.
Ladenburg Thalmann and H.C. Wainwright raised their price targets to $53.50 and $60 respectively, both maintaining a Buy rating. Goldman Sachs, while maintaining a Neutral rating, also increased its price target to $22. Oppenheimer, however, reduced its price target from $34 to $32 while maintaining an Outperform rating. UroGen Pharma also reported Q1 revenues of $18.8 million, primarily driven by sales of JELMYTO, its treatment for low-grade upper tract urothelial cancer, but also reported a net loss of $32.3 million for the same quarter. Lastly, the company announced the appointment of David Lin as its new Chief Commercial Officer.
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