DelMar Pharmaceuticals Inc. (NASDAQ:DMPI)
Shares of DelMar Pharmaceuticals Inc. (NASDAQ:DMPI) gained 7.01% after equity firm SeeThruEquity initiated coverage of the stock with a ‘buy’ rating. Following recent clinical development and financing activities the analytical firm, which focuses on small-cap and microcap public companies, says it expects the stock to rise to $5.20 a share.
The high price target comes as a surprise given the way DelMar Pharmaceuticals has been battered on Wall Street. The stock is down by more than 50% for the year as it continues to trade in a strong downtrend. However, SeeThruEquity remains bullish about DLMR long-term prospects given the amount of cash the company has, to finance ongoing clinical development programs.
The stock is currently rated as a strong ‘buy’ by three analysts firm with one maintaining a ‘hold’ rating according to Zack Investment Research.
DelMar Pharmaceuticals Inc. (NASDAQ:DMPI) is currently working on its lead compound VAL-083 as a potential treatment for refractory and front-line Glioblastoma multiforme, an aggressive form of brain cancer. The company has also announced a new IND for a Phase 2 study of VAL-083 in platinum resistant ovarian cancer. VAL-083 is a first-in-class small molecule with DNA targeting agent that has shown potential to address multiple cancers including brain, lungs, and blood in preclinical trials.
Delmar’s FY2017 Net Loss
DelMar’s second-quarter results fell short of Wall Street expectations. For the year ended June 30, 2017, the clinical stage pharmaceutical company generated a net loss of (-$8.1) million or (-$0.74) a share, compared to a net loss of (-$8.9) million reported last year.
DelMar Pharmaceuticals Inc. (NASDAQ:DMPI) has sought to quash the disappointing financial results by reiterating it achieved important milestones on the development of its pipeline of drugs.
“We are proud of the progress we have made with our research and clinical programs this past year and look forward to continuing to advance VAL-083 toward commercialization as a new treatment for cancer patients with limited or no options,” said Jeffrey Bacha, Delmar’s president and chief executive officer.
During the quarter, the company completed offerings of common stock and warrants through which it raised gross proceeds of $19 million. DelMar Pharmaceuticals intends to use the offerings for clinical trials and general corporate purposes.
DelMar Pharmaceuticals Inc. (NASDAQ:DMPI) exited the 2017 fiscal year with $14.3 million in cash and clinical trial deposits.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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