On Monday, H.C. Wainwright maintained a Buy rating with a $3.00 price target on shares of Renalytix AI Plc. (NASDAQ:RNLX), following the company's announcement of a significant collaboration in Europe. Renalytix AI has partnered with Steno Diabetes Center in Copenhagen, Denmark, to develop a roadmap for the implementation of its KidneyIntelX platform at Steno and its affiliated practices.
The collaboration, which was announced on July 11, aims to integrate KidneyIntelX biomarker testing into laboratory workflows. This marks the first instance of Renalytix's platform being used outside the United States, potentially demonstrating its clinical utility within the European Union (EU).
The partnership is also expected to establish a framework for the implementation of precision medicine solutions in clinical practice and to address the requirements for obtaining CE marking under the EU's In-Vitro Diagnostic Regulation.
The firm believes that this partnership could lead to broader adoption of the KidneyIntelX in EU countries in the foreseeable future. The collaboration is seen as a strategic move to navigate the necessary elements for a successful clinical translation of the KidneyIntelX in a European setting.
Renalytix AI's initiative with Steno Diabetes Center is a step towards showcasing the clinical benefits of its platform in the EU and may serve as a model for future expansion in the region. The firm's sustained Buy rating and price target reflect optimism about the potential growth and adoption of Renalytix's technology in the European healthcare market.
In other recent news, Renalytix, a medical laboratory services company, faces potential delisting from Nasdaq due to noncompliance with certain listing requirements. Despite this, the company intends to appeal the decision and present a strategic plan for regaining compliance.
In financial developments, Renalytix reported a decrease in third-quarter revenue to $535,000, down from the previous year's $724,000, despite a 40% reduction in operating expenses to $6.5 million.
The company has also seen changes in its executive team, with the resignation of O. James Sterling as Chief Financial Officer and the appointment of Joel R. Jung as Interim Chief Financial Officer. Renalytix has also replaced Ernst & Young LLP with CohnReznick LLP as its new independent registered public accounting firm.
Analysts from H.C. Wainwright and BTIG have revised their price targets for Renalytix shares to $3.00 and $2.00 respectively, while maintaining a Buy rating. These changes followed updates on Medicare coverage for the KidneyIntelX.dkd test and reflect the slower than expected commercial progress of the KidneyIntelX product. These are the recent developments in the company's operations.
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