Maxim Group downgraded Aridis Pharmaceuticals (NASDAQ:ARDS) to “hold” from “buy” and removed its price target, citing capital concerns and key clinical programs. The stock closed at $2.19 on Aug. 15.
In a 10-Q report, Aridis ended the latest quarter with $6.3-millon in cash on the balance sheet, which “only funds operations into the fourth quarter of 2022, in our view,” writes analyst Jason McCarthy, Ph.D.
“Based on our assumptions, Aridis needs to raise capital and given the challenging financing environment, we are downgrading the shares to hold, from buy, and removing our prior price target while the company addresses its capital needs,” he added.
“We are awaiting on key programs including the ongoing Phase 3 program in ventilator/hospital associated pneumonia, the Phase 2a study in cystic fibrosis, and the COVID inhaled antibody program,” Dr. McCarthy said.