Benchmark has raised its price target on shares of Modular Medical Inc. (NASDAQ: MODD) to $8.00, up from the previous target of $5.00, while maintaining a Speculative Buy rating on the stock.
The company is currently focusing on obtaining 510(k) clearance for its MODD-1 insulin pump within this quarter.
Modular Medical concluded the June quarter with $5 million in cash reserves. According to the firm, these funds are expected to sustain the company's operations through the end of the current quarter, which includes the anticipated 510(k) clearance for the MODD-1 insulin pump. Following the clearance, the company will evaluate financing options for the commercialization phase.
The analyst highlighted the potential of the MODD-1 insulin pump to reach a broader patient base by addressing common barriers to adoption. The pump aims to offer an affordable and user-friendly diabetes management solution that could be attractive to patients, healthcare providers, and insurance companies.
In other recent news, Modular Medical commenced its manufacturing transfer to Phillips Medisize facilities in Mexico, marking a significant milestone in its transition from pre-commercial stages to a key player in the medical device market.
This shift is happening concurrently with the FDA's ongoing review of the company's MODD1 Insulin Delivery System. Kevin Schmid, the Chief Operating Officer, anticipates the manufacturing operation to be validated and ready for production early next year.
In addition, Modular Medical is set to join the Russell Microcap Index starting July 1, 2024, following the annual reconstitution of the Russell indexes. This move will automatically enroll the company in the relevant growth and value style indexes for a year. The Russell Microcap Index is a segment of FTSE Russell, a global index provider, with approximately $10.6 trillion in assets benchmarked against it.
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