SAN JOSE, CA - Rani Therapeutics Holdings, Inc. (NASDAQ:RANI), a clinical-stage biotherapeutics company, announced today that it has decided against pursuing an equity financing round at this time. The company, which specializes in the oral delivery of biologics and drugs, had previously engaged in preliminary discussions with potential investors regarding a fundraising effort.
Following a thorough evaluation of its current cash position, business forecast, and prevailing market conditions, Rani Therapeutics concluded that it was not the opportune moment to seek additional capital through equity financing. The company's decision reflects a strategic assessment of its financial needs in relation to ongoing business development and investment opportunities.
While the company has chosen to hold off on equity financing for now, it has indicated that it remains open to revisiting this option in the future as it continues to monitor its capital requirements and business projections.
This development was disclosed in a recent filing with the Securities and Exchange Commission, in accordance with Regulation FD. The information reported is not considered filed under the Securities Exchange Act of 1934 and will not be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act unless specifically referenced in such filings.
Rani Therapeutics' decision comes at a time when the company is assessing its pathway forward in a dynamic healthcare market. With a focus on innovation in drug delivery systems, Rani Therapeutics continues to explore various avenues to support its growth and development in the pharmaceutical industry. The company's engagement with investors and its evaluation of financing strategies are indicative of its proactive approach to navigating the complexities of the market.
Investors and stakeholders will be watching closely as Rani Therapeutics evaluates its strategic options moving forward. The company's actions will be guided by its commitment to advancing its pipeline of products and maintaining a robust financial foundation.
In other recent news, Rani Therapeutics Holdings, Inc. and South Korean biotech firm ProGen Co., Ltd. have entered into a partnership to co-develop and commercialize RT-114, an oral therapeutic for obesity. The collaboration aims to leverage Rani's RaniPill® capsule and ProGen's proprietary protein, PG-102, to potentially transform obesity treatment.
The agreement stipulates a 50/50 cost and revenue share arrangement for the worldwide development and commercialization of the product, with Rani leading development in the United States, Europe, Canada, and Australia, and ProGen taking charge in the rest of the world.
In financial developments, Rani Therapeutics reported a net loss of $0.56 per share for the first quarter of 2024, with research and development expenses amounting to $7.6 million and selling, general, and administrative expenses totaling $6.4 million. In response to these figures, H.C. Wainwright increased its price target for Rani Therapeutics from $12.00 to $13.00, maintaining a Buy rating on the company's shares.
Concurrently, Canaccord Genuity revised its financial outlook for Rani Therapeutics, reducing its price target from $21.00 to $9.00 due to a shift in the clinical development timeline, specifically for the U.S. launch of Rani Therapeutics' osteoporosis treatment candidate, RT-102.
Despite the revised timeline, Canaccord Genuity maintained a Buy rating on the company's shares. These are recent developments in the ongoing analysis and adjustments made by analysts at H.C. Wainwright and Canaccord Genuity.
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