SVB Securities downgrades Decibel Therapeutics over cash concerns

Decibel Therapeutics

15/03/2023 16:04

(Updates)
    ** SVB Securities downgrades hearing-related drug developer
Decibel Therapeutics  DBTX.O  to "market perform" from
"outperform" and cuts PT to $2 from $7  
    ** DBTX shares fall 11% to $3.63
    ** 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 1H'24 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"
    ** Five of 6 brokerages rate the stock "buy" or higher, and
1 "hold"; their median PT is $13 - Refinitiv data
    ** Including session's moves, stock rose ~28% in the past 12
months

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