Antibe: Canaccord Lowers Price Target After Co-Leading $40.4 Million Financing
Wednesday, Antibe Therapeutics (TSX: ATE) announced that they closed their bought deal financing. The bought deal was for 6.7 million units at a price of C$6, which includes a share plus one-half warrant at C$7.50 for total consideration of C$40.4 million. The company said they intend to use the proceeds to fully fund their Phase three efficacy trial and remaining non-clinical studies, complete IND-enabling studies for its second and third pipeline drugs, and advance new anti-inflammatory drug candidates.
Antibe Therapeutics currently has six analysts covering the company with a weighted 12-month price target of C$18.05, a 232% increase. This is up from the average last month, which was C$15.62. One analyst has a strong buy rating, while all other five analysts have buy ratings.
In a note Thursday morning, Canaccord’s analyst Tania Gonsalves downgraded their 12-month price target to C$14.50 from C$16 and reiterated their speculative buy rating on the company after being the sole bookrunner and co-lead the underwriting on the bought deal. They estimate that their current cash balance is now C$74 million.
She says this raise has materially de-risked Antibe’s development plans as it is expected to cover the full adaptive phase 2/3 otenaproxesul program, which is estimated to cost C$60 million. The rest of the proceeds will go to a few different things.
C$2.1 million is expected to go towards their non-clinical studies, C$10.9 million towards its adaptive phase 3 trial, C$3.6 million to its IND-enabling studies for its second/third pipeline drugs, and C$500k will go towards early-stage work on the new anti-inflammatory drug.
Gonsalves touches on Antibe’s earnings results on February 12th. She said that everything was in-line except the quarterly cash burn. Operating expenses came in at $6.3 million, above their $6.1 million estimate. R&D expenses came in at $3.4 million, slightly ahead of their $3.1 million estimate, and SG&A came in below their $3 million estimate at $2.8 million
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