Taysha Gene Therapies drops on $30 mln equity offering plans, analyst PT cuts

Taysha Gene Therapies

26/10/2022 13:12

** Taysha Gene Therapies Inc  TSHA.O  down ~15% premarket as
co looks to raise equity after its shares doubled
    ** TSHA closed up 97.4% at $2.98 on Tues after announcing
late Mon $50 mln investment by Japan's Astellas Pharma Inc
 4503.T  to acquire 15% stake to support Taysha's
adeno-associated virus (AAV) therapies  urn:newsml:reuters.com:*:nPn2z0LB3a
    ** Astellas to receive exclusive option to license two of
Taysha's clinical stage programs: TSHA-102 for Rett syndrome and
TSHA-120 for GAN (Giant Axonal Neuropathy)
    ** After the bell Tues, Taysha announced $30 mln equity
offering with Goldman Sachs as sole bookrunner  urn:newsml:reuters.com:*:nGNXc0BQ4v
    ** Truist Secs said strategic deal with Astellas extends
lifeline to "cash strapped" TSHA to 4Q23, but slashes PT to $15
from $35 citing significantly narrowed drug pipeline
    ** Baird also cut its PT to $21 from $26
    ** Taysha estimates it had ~$34 mln of cash at end-Sept,
excluding $50 mln of proceeds from Astellas transaction, per
securities filing
    ** Even with move on Tues, TSHA has fallen 74% YTD
    ** Co, which now has ~$120 mln market cap, went public in
Sept 2020 IPO at $20
    ** All 14 analysts covering TSHA are bullish with median PT
of $22 - Refinitiv data
 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))