Citi initiates coverage on 9 Meters Biopharma with 'neutral'

9 Meters Biopharma

10/02/2023 12:17

** Brokerage Citi initiates coverage on 9 Meters Biopharma
Inc  NMTR.O  with "Neutral" rating and PT of $2.70 
    ** Citi sees potential for NMTR's lead drug, vurolenatide,
but says co's cash runway is only sufficient to support
operations through Q1 this year 
    ** Believe a deal to out-license the drug's rights outside
of U.S. would be most favorable, as co's management seeks
options to secure additional capital - Citi 
    ** Citi adds that data suggests drug showed a meaningful
treatment benefit on some parameters which supports
vurolenatide's late-stage development 
    ** Brokerage sees potential for ~$1.2 bln in peak U.S. sales
for vurolenatide
    ** NMTR shares down ~54% in the past six months
 (Reporting by Raghav Mahobe)
 ((Raghav.Mahobe@thomsonreuters.com;))