H.C. Wainwright lowered its price target for Iterum Therapeutics (NASDAQ:ITRM) to $9 from $14 after the company unveiled a $52-million private placement of exchangeable and royalty-linked subordinated notes earlier this month.
“Overall, we believe this new funding round still only provides runway into the second half of 2020 (likely August or September), and we expect another financing round later this year,” writes analyst Ed Arce. “Ultimately, we believe this private placement round provides a critical runway through pivotal data and NDA filing.”
Irish-based Iterum is developing anti-infectives aimed at combatting the global crisis of multi-drug resistant pathogens, with an initial focus on complicated and uncomplicated urinary tract infections (UTI) with oral and IV formulations of lead drug candidate, sulopenem.
“We continue to hang our hat on the UTI opportunity,” Mr. Arce said, noting that the company’s Phase 3 SURE 2 trial in complicated UTI completed full enrollment in mid-November, while the Phase 3 SURE 1 trial in uncomplicated UTI completed full enrollment in late December.
“While we do not know whether the readouts will be separate or together, we are confident of a first quarter of 2020 timeline,” he added.