Vera Therapeutics Inc. (VERA:NASDAQ) has further strengthened its balance sheet by drawing down US$25 million in debt, bringing total cash reserves to US$159.9 million, according to H.C. Wainwright analysts Ed Arce and Thomas Yip in a December 27 research note.
The analysts estimate this additional capital extends Vera's operational funding runway into the second quarter of 2026.
With cash now shored up, Vera has eliminated any financial pressures or risk of dilution overhanging the stock through multiple upcoming catalysts for lead candidate atacicept in immunoglobin A nephropathy (IgAN).
In the near term, the analysts view efficacy and safety data readouts expected in the first half of 2024 from the open-label extension of the Phase 2b ORIGIN trial as the next major milestone for atacicept.
Later next year, Vera is aiming to report pivotal top-line ORIGIN-3 data that could support regulatory filing and approval of atacicept in IgAN.
Reflecting confidence in atacicept's clinical and commercial outlook, Arce and Yip rate Vera shares a Buy with a US$25 price target, implying over 55% upside from the current trading price of around US$16.
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Disclosures for H.C. Wainwright & Co., Vera Therapeutics Inc., December 27, 2023
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H.C. WAINWRIGHT & CO, LLC RATING SYSTEM: H.C. Wainwright employs a three tier rating system for evaluating both the potential return and risk associated with owning common equity shares of rated firms. The expected return of any given equity is measured on a RELATIVE basis of other companies in the same sector. The price objective is calculated to estimate the potential movements in price that a given equity could reach provided certain targets are met over a defined time horizon. Price objectives are subject to external factors including industry events and market volatility.
H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer.
I, Ed Arce and Thomas Yip , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst’s household has a financial interest in the securities of Vera Therapeutics, Inc. (including, without limitation, any option, right, warrant, future, long or short position).
As of November 30, 2023 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Vera Therapeutics, Inc..
Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The firm or its affiliates received compensation from Vera Therapeutics, Inc. for non-investment banking services in the previous 12 months.
The Firm or its affiliates did not receive compensation from Vera Therapeutics, Inc. for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm does not make a market in Vera Therapeutics, Inc. as of the date of this research report.
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