SVB Securities downgrades Decibel Therapeutics over cash concerns

Decibel Therapeutics

15/03/2023 12:09

** SVB Securities downgrades hearing-related drug developer
Decibel Therapeutics  DBTX.O  to "market perform" from
"outperform" and cuts PT to $2 from $7  
    ** Brokerage bases the downgrade on co's inability to find
partnership opportunities for DB-020, an experimental drug to
treat hearing or balance problems caused by chemotherapy   
    ** SVB raises concerns regarding cash burn and cash runway
    ** DBTX expects their current cash runway to fund operations
into 1H24 and will need to raise capital near-term - brokerage
    ** Brokerage believes "protracted timeline to secure a
partner for DB-020 leaves key source of non-dilutive capital at
risk"
    ** 5 of 6 brokerages rate the stock "buy" or higher, and 1
"hold"; their median PT is $13
    ** Up to     Tuesday's close, stock had risen ~39% over the
past 12 months

 (Reporting by Mariam Sunny)
 ((Mariam.ESunny@thomsonreuters.com;))