H.C. Wainwright cuts Galera's PT after stock sale

Galera Therapeutics

22/03/2023 17:38

** Drug developer Galera Therapeutics Inc  GRTX.O  shares
down 7.5% at $1.97
    ** H.C. Wainwright cuts PT to $6 from $10, citing dilution
impact from a stock sale and assuming exercise of all warrants
issued 
    ** GRTX earlier in the month raised net proceeds of roughly
$28.2 mln in an equity financing that comprised the sale of 14.3
mln shares of common stock at $2.095 per/share and 14.3 mln
five-year warrants to purchase common stock at $1.97 per/share
    ** Brokerage, however, remained optimistic of efficient
commercialization of GRTX's lead experimental drug, avasopasem;
FDA scheduled to finalize decision by Aug. 9
    ** U.S. FDA mid-February accepted marketing application for
the drug candidate to treat radiotherapy-induced severe oral
mucositis in patients with advanced head and neck cancer
    ** Brokerage sees total revenue of $5.7 mln for GRTX in
2023, assuming the timely launch of avasopasem and sets 2024
revenue view totaling $52.9 mln and a net loss of $0.66 per
share 
    ** Believes that Galera could achieve cash flow break-even
in H2'25 
    ** In 2022, stock fell 67.5% 

 (Reporting by Pratik Jain in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))