GRTX - Galera raised to Buy at BofA; says FDA priority review lifts key overhang
- Bank of America upgraded micro-cap biotech Galera Therapeutics ( NASDAQ: GRTX ) to Buy from Underperform on Thursday, citing the FDA priority review the company received for its marketing application for lead asset avasopasem.
- Galera ( GRTX ) seek to market avasopasem manganese for severe oral mucositis (SOM) the head and neck cancer patients develop due to radiotherapy they receive as standard-of-care.
- With no AdCom meeting expected from the FDA, “the NDA acceptance removed a key overhang on the stock and priority review is a nice surprise,” the analyst Tazeen Ahmad wrote.
- The analyst notes that the company subsequently announced a $30M capital raise and warrants offering. He cites this dilution impact as a reason for the weakness in GRTX share price today, which he thinks is a buying opportunity.
- Raising the price target on Galera ( GRTX ) to $7 from $2 per share, Ahmad also notes that the company has added a chief commercial officer to assist the market rollout of avasopasem and SOM represents a “significant unmet need” with no FDA approved therapies.
- Read: In a bullish thesis on Galera ( GRTX ), Seeking Alpha contributor Dan Victor described multiple catalysts for the company in 2022.
For further details see:
Galera raised to Buy at BofA; says FDA priority review “lifts key overhang”