Mithra Pharmaceutical rises as private placement reassures investors

Mithra Pharmaceuticals SA

21/06/2022 08:22

** Shares in Mithra Pharmaceuticals  MITRA.BR  jump 10%
after the biotech company announced the details of its 23.5
million euro ($24.75 million) private placement  urn:newsml:reuters.com:*:nFWN2Y707I
    ** The Belgian group will use the proceeds to support
additional studies linked to hormone therapy product candidate
Donesta and the authorisation safety study of Estelle
contraceptive treatment, among others
    ** The company named its CEO Leon Van Rompay among the
investors in the placement
    ** Berenberg ("buy") says the placement eases cash concerns
and is positive despite being around 8% dilutive, as it cleans
up the cash story in the short term
    ** KBC Securities ("buy") notes it is interesting the
company's CEO is mentioned as an investor in the round
    ** "This strikes us as good news, as it now aligns interests
for company management with shareholders," KBC says
    ** Mithra is "fundamentally undervalued", adds Berenberg,
saying it is convinced the fundamental value of the company is
being "deeply misunderstood by the market"
    ** Berenberg cuts its target price by 24% to 31 euros, which
still represents a significant upside
    ** The stock has dropped by around 65% YTD

($1 = 0.9493 euros)

 (Reporting by Elena Vardon)
 ((elena.vardon@tr.com))