On Tuesday, H.C. Wainwright adjusted the price target for Inventiva SA (NASDAQ:IVA) to $13.00, down from the previous $14.00, while maintaining a Buy rating on the stock. This change follows the announcement made by Inventiva on Monday regarding a significant financing deal.
Inventiva disclosed a cash injection of €94.1 million, with €86.6 million in net proceeds, as part of a potential funding package that could reach up to €348 million, subject to certain conditions. The funding round saw participation from both new and existing healthcare investors, including New Enterprise Associates (NEA), BVF Partners LP, and Samsara BioCapital, along with eight additional investors.
As part of this financing transaction, which is pending shareholder approval by December 16, 2024, Inventiva is set to appoint Mark Pruzanski, MD, as the Chairman of its Board, and Srinivas Akkaraju, MD, PhD, as a board director. Up to four more directors will be nominated by the four largest investors, with at least two independent directors replacing current ones, with the exception of Frederic Cren, Mark Pruzanski, and Srini Akkaraju.
The analyst from H.C. Wainwright noted that Dr. Pruzanski brings extensive experience in the clinical development of MASH therapeutics from his time as the Founder, President, and CEO of Intercept Pharmaceuticals, which is now part of Alfasigma S.p.A. The financing is seen as crucial and timely for Inventiva, extending its cash runway, which was previously estimated to last until mid-October.
The funds are expected to support the company through the NATiV3 pivotal Phase 3 trial’s top-line data readout, anticipated in the second half of 2026, and potentially through to the accelerated approval of lanifibranor for MASH fibrosis, which is expected in the second half of 2027.
In other recent news, Inventiva SA has been the focus of several financial revisions and adjustments. The company secured $410 million in funding to support the completion of its Phase 3 NATiV3 pivotal program for the treatment of MASH, a metabolic dysfunction disorder, according to Stifel, which reaffirmed its Buy rating and adjusted its price target for Inventiva to $20.00. The NATiV3 trial, which has enrolled approximately 1,100 patients, is expected to be completed in the first half of 2025.
Simultaneously, H.C. Wainwright revised its price target for Inventiva from $22 to $14, while maintaining a Buy rating. This adjustment followed the announcement of a minor delay in the NATiV3 Phase 3 trial for lanifibranor. Despite this delay, the trial has surpassed 85% of its enrollment goal and is expected to complete patient screening by year’s end, with top-line data anticipated in the second half of 2026.
Stifel also downgraded Inventiva’s stock target from $25 to $20, expressing concerns about the company’s financial stability. Despite efforts to extend its cash runway and raise additional funds through the issuance of royalty certificates, Inventiva’s financial situation has shown little improvement.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Inventiva SA’s financial position and market performance. The company’s market capitalization stands at $121.16 million, reflecting its current valuation in the biotech sector. Despite the recent price target adjustment by H.C. Wainwright, InvestingPro Tips highlight that Inventiva has seen a significant return over the last week, with a 57.67% price total return in the past seven days.
Inventiva’s financials reveal some challenges, as the company is not profitable over the last twelve months, with a negative operating income of $107.08 million. This aligns with the InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year. However, it’s worth noting that Inventiva boasts impressive gross profit margins of 94.38%, which could be a positive factor as the company moves forward with its clinical trials and potential drug approvals.
The recent financing deal discussed in the article is particularly crucial when considering another InvestingPro Tip, which notes that Inventiva’s short-term obligations exceed its liquid assets. This cash injection is likely to significantly improve the company’s financial position and extend its operational runway.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Inventiva SA, providing a deeper understanding of the company’s financial health and market position.
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