On Friday, Rodman & Renshaw initiated coverage on shares of Tharimmune, Inc. (NASDAQ: THAR), issuing a Buy rating with a 12-month price target of $17.00 per share. The analyst at Rodman & Renshaw based the price target on a detailed financial model that includes a risk-adjusted net present value (NPV) assessment of the company's TH104 program, which is currently under development for Primary Biliary Cholangitis (PBC).
The price target reflects the potential future cash flows from TH104, adjusted for tax and risks, until the year 2040. The valuation model applies a 15% discount rate and takes a 21% tax rate into account, arriving at an NPV of approximately $135 million.
The valuation translates to $17 per share, matching the firm's price target for Tharimmune. InvestingPro analysis shows the company maintains a healthy liquidity position with a current ratio of 2.35 and holds more cash than debt on its balance sheet.
Rodman & Renshaw's outlook on Tharimmune's stock is contingent on the successful development and commercial launch of TH104. The analyst noted that significant efficacy benefits and safety of TH104 are critical for the company to reach the projected price target. Any failure to demonstrate these could prevent the shares from achieving the expected valuation.
The firm also highlighted potential risks that could impact Tharimmune's ability to meet the price target. These risks include the possibility of TH104 being deemed unsafe or failing to show significant efficacy benefits, which could lead to the discontinuation of clinical programs. Moreover, Tharimmune's need to secure additional funding to complete the development of TH104 is considered a financial risk for the company.
In other recent news, Tharimmune, Inc. has seen several significant developments. The company has expanded its board of directors, appointing Sanam Parikh as the newest member. Concurrently, Tharimmune has canceled a potential merger with Intract Pharma Ltd., as disclosed in a recent SEC filing.
The company has also announced advancements in its clinical trials and strategic partnerships, including a forthcoming European patent for its biodegradable polymeric nanoparticles technology, expected to enhance cancer therapies.
Tharimmune has received positive feedback from the European Medicines Agency (EMA) regarding its Phase 2 clinical trial plans for TH104, a drug candidate for pruritus in primary biliary cholangitis (PBC).
Phase 1 data for TH104 shows promise, with the drug well received and no unexpected treatment-emergent adverse events reported. Tharimmune has also entered into an exclusive licensing agreement with Intract Pharma for an innovative oral delivery platform for anti-inflammatory treatments.
These developments underscore Tharimmune's ongoing efforts to expand its immunology focus and offer more accessible treatment options.
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