Melinta Therapeutics Inc (NASDAQ: MLNT) received a Buy rating and a $14 price target from H.C. Wainwright analyst Ed Arce today. The company’s shares closed yesterday at $4.30, close to its 52-week low of $4.
Arce said:
“Valuation near-rock bottom: Market cap and EV below consideration paid for IDB acquisition just nine months ago. At closing, Melinta paid in cash and 3.3M shares (then worth about $55M). In addition, it agreed to two guaranteed payments of $25M in 2019 (recorded at fair value and accreted via non-cash interest expense). Thus, the total consideration for the infectious disease business was $270M, before any potential sales-based royalty payments (likely range: 5-15%; recorded at fair value of $14M and accreted via non-cash interest expense). By comparison, the current market capitalization and enterprise value of MLNT is $241M and $239M, respectively.”
According to TipRanks.com, Arce is a 5-star analyst with an average return of 20.9% and a 44.2% success rate. Arce covers the Healthcare sector, focusing on stocks such as Madrigal Pharmaceuticals Inc, Collegium Pharmaceutical, and Conatus Pharmaceuticals.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Melinta Therapeutics Inc with a $14.50 average price target.
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Based on Melinta Therapeutics Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $55.78 million. In comparison, last year the company had a GAAP net loss of $12.27 million.
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Melinta Therapeutics, Inc. is a commercial-stage biopharmaceutical company, which engages in the discover, development and commercialization of antibiotics. Its product, Baxbela, is used in the treatment of acute bacterial skin and skin structure infections.
