Cantor Fitzgerald downgraded Aravive (NASDAQ:ARAV) to “neutral” from “overweight” and slashed its price target to 25 cents from $18 after the company indicated it might be forced to cease operations. The stock closed at 20.5 cents on Aug. 21.
In its second quarter report, the company noted that in order to preserve cash, it has terminated its Phase 1b/ Phase 2 trials of batiraxcept in clear cell renal cell carcinoma and pancreatic adenocarcinoma, unless it raises more capital.
“If it does not raise capital or engage a strategic partner in the next several weeks, it will be forced to cease operations,” writes analyst Louise Chen. Aravive had cash and cash equivalents of $18.4-million at June 30, 2023.
Earlier this month, Aravive announced that its Phase 3 platinum-resistant ovarian cancer study did not meet its primary endpoint of progression-free survival.