On Tuesday, Benchmark reiterated its Speculative Buy rating and an $8.00 price target on shares of Anebulo Pharmaceuticals (NASDAQ: ANEB). The company recently announced its financial results for the fourth quarter of 2024 and provided updates on its product development progress.
Anebulo Pharmaceuticals is advancing its product pipeline with a focus on the development of an intravenous (IV) formulation of selonabant, aimed at treating acute cannabis poisoning.
The company has received a $1.9 million two-year cooperative grant from the National Institute of Drug Abuse (NIDA) to support the scale-up of this IV formulation. Anebulo plans to complete Investigational New Drug (IND)-enabling activities for IV selonabant by the end of 2024. Additionally, the company is preparing to enroll the first patients in a healthy volunteer study in the following year.
For the fiscal year that concluded in June 2024, Anebulo reported a net loss of $8.2 million or ($0.32) per share. This marks an improvement from the previous fiscal year ending in June 2023, where the company reported a net loss of $11.7 million or ($0.47) per share. The reduction in net loss is seen as a positive development in Anebulo's financial performance.
Benchmark's continued support for Anebulo is reflected in the maintenance of its Speculative Buy rating and the affirmation of the $8 price target for the company's shares. This endorsement comes amidst Anebulo's efforts to advance its medical research and development, specifically targeting solutions for cannabis-related health issues.
In other recent news, Anebulo Pharmaceuticals has been awarded an initial $0.9 million grant from the National Institute on Drug Abuse (NIDA), with the possibility of an additional $1 million in funding to support the development of their drug, intravenous selonabant.
This grant is intended to aid the creation of an emergency treatment for acute cannabis-induced toxicities, especially in children. The funding is structured in two tranches, contingent upon Anebulo Pharmaceuticals achieving certain milestones in the drug's development.
Intravenous selonabant, currently under development, has completed a Phase 2 clinical trial, evaluating its effectiveness in blocking and reversing the negative effects of acute cannabinoid intoxication. The company is also conducting an observational study in emergency departments to gather data on patients affected by acute cannabinoid intoxication.
In a separate development, Anebulo Pharmaceuticals has introduced a new equity compensation policy for non-employee directors. This policy stipulates that each non-employee director will receive an initial equity award of an option to purchase 50,000 shares of the company's common stock, with these options vesting monthly over three years.
Additionally, directors will receive an annual equity award of an option to purchase 25,000 shares of common stock.
InvestingPro Insights
Recent InvestingPro data provides additional context to Anebulo Pharmaceuticals' financial situation and market performance. The company's market capitalization stands at $50.05 million, reflecting its current valuation in the biotech sector. Notably, Anebulo's stock has experienced a significant decline, with a 27.99% drop over the past three months and a 36.82% decrease over the last year.
InvestingPro Tips highlight that Anebulo suffers from weak gross profit margins and is not profitable over the last twelve months, aligning with the reported net loss in the article. However, the company's liquid assets exceed short-term obligations, which could provide some financial flexibility as it advances its product pipeline.
The stock's Price to Book ratio of 13.13 suggests a high valuation relative to its book value, which investors should consider alongside the company's development stage and future potential. Analysts do not anticipate profitability this year, consistent with the company's focus on research and development activities.
For readers interested in a deeper analysis, InvestingPro offers 5 additional tips that could provide further insights into Anebulo Pharmaceuticals' investment potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.