Why Did WBB Securities Downgrade Melinta Therapeutics Inc’s Stock?


WBB Securities analyst Stephen Brozak downgraded Melinta Therapeutics Inc (MLNT) to Hold yesterday and set a price target of $8. The company’s shares closed yesterday at $6.41, close to its 52-week low of $1.62.

Brozak wrote:

“We are valuing the MLNT franchise using a sum-of-the parts calculation which is comprised of 4 components as follows: The first component is MLNT’s commercial portfolio, which we assign a value of $100 Million for all commercial assets currently being sold. The second we assign to MLNT’s clinical programs, which include BAXDELA for CABP and cUTI, a value of $35 Million. MLNT as of their most recently 10Q had cash and cash equivalents of $116.9 Million (Doesn’t include cash burn for balance of Q2 2019). And finally, MLNT has long term debt as of their most recent 10Q, both convertible and non-convertible totaling $153.75 Million, which we subtract from the total of the previous components to arrive at a sum-of-the parts valuation of $98 Million. Given the approximately 12 Million* shares outstanding, we arrive at a 12-month price target of $8.00* per share.”

According to TipRanks.com, Brozak is a 4-star analyst with an average return of 13.1% and a 46.8% success rate. Brozak covers the Healthcare sector, focusing on stocks such as Marker Therapeutics Inc, ADMA Biologics, and SCYNEXIS.

The word on The Street in general, suggests a Hold analyst consensus rating for Melinta Therapeutics Inc with a $24.67 average price target.

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The company has a one-year high of $39.95 and a one-year low of $1.62. Currently, Melinta Therapeutics Inc has an average volume of 1.72M.

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Melinta Therapeutics, Inc. operates as a commercial-stage pharmaceutical company which engages in developing and commercializing anti-infective s for the hospital and selected non-hospital or communities. It markets antibiotics including Baxdela, Vabomere, Orbactiv, and Minocin for injections.

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