RBC Capital has adjusted its price target for MeiraGTx Holdings plc (NASDAQ: MGTX), a biotechnology company, to $9.00, down from the previous $11.00. The firm maintained its Outperform rating on the stock.
The revision comes after MeiraGTx reported its second-quarter results and disclosed details of a $50 million equity financing deal at $4 per share. The financing includes a $30 million investment from Sanofi (EPA:SASY) (NASDAQ:SNY) and additional funds from various investors, some of whom are existing shareholders.
MeiraGTx has been in discussions with the FDA regarding its treatment for xerostomia, a condition characterized by dry mouth. The company has confirmed that its ongoing Phase II placebo-controlled study could potentially support a Biologics License Application (BLA) by 2026. The treatment has so far shown promising results in a single-arm study.
In addition to the developments in its xerostomia treatment, MeiraGTx is also progressing in its efforts to treat X-linked retinitis pigmentosa (XLRP), a genetic eye condition. The company anticipates pivotal trial results later this year and is positioned to receive $15 million in 2024, with the potential for up to $285 million in payments upon the first commercial sales in the United States and European Union, as well as upon completion of a CMC technology transfer.
MeiraGTx is not only focusing on treatments for xerostomia and XLRP but is also targeting Parkinson's disease. Phase I data for Parkinson's treatment is expected in the fourth quarter of 2024. Furthermore, the company is set to release pre-clinical data for its riboswitch platform later this year, which has applications in obesity and CAR-T therapies.
MeiraGTx Holdings has announced a public offering of 12.5 million ordinary shares at $4 each, expecting to generate $50 million in gross proceeds before underwriting discounts and expenses. Sanofi is leading the investment with a $30 million equity stake, with other participants including Perceptive Advisors and various institutional healthcare funds.
BofA Securities is the sole underwriter for the offering. The proceeds from this offering are intended for general corporate purposes, which may include research and development expenses, clinical trial costs, and other business activities.
Simultaneously, Chardan Capital Markets has initiated coverage on MeiraGTx with a Buy rating, citing confidence in the company's adeno-associated virus (AAV)-based gene therapy pipeline. The firm highlighted the promising Phase 1 data from the AQUAx study, the recent agreements with Janssen Pharmaceuticals, and the strength of MeiraGTx's preclinical pipeline.
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