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A Look at MeiraGTx’s Risk Factors

MeiraGTx Holdings (MGTX) is a clinical-stage gene therapy company in the that focuses on severe illnesses.

Let’s take a look at what has changed in the company’s key risk factors that investors should know. (See MGTX stock charts on TipRanks)

MeiraGTx Risk Factors

According to the new Tipranks Risk Factors tool, MeiraGTx’s main risk category is Tech & Innovation, which accounts for 31% of the total 75 risks identified for the stock. The next two major risk factor contributors are Legal & Regulatory and Finance & Corporate, which stand at 25% and 21%, respectively.

Since June, the company has added one new risk factor under Legal & Regulatory. 

Under the Environmental / Social sub-category, the company said, “Expectations relating to environmental, social and governance factors may impose additional costs and expose us to new risks.”

MeiraGTx points out that regulatory agencies, such as the Securities and Exchange Commission (SEC), stock exchanges, and investors are increasingly concerned about corporate responsibility these days.

As a result, the company now needs to publish additional environmental, social, and governance disclosures, as suggested by the SEC. MeiraGTx underlines that if the firm fails to do so, or if investors believe the company’s disclosures are insufficient, they may decide not to invest in it.

The overall sector average for the Finance & Corporate risk factor is 29%, higher than the average risks in that category for MeiraGTx, which is just 21.3%.

MeiraGTx Financial Performance

MeiraGTx reported license revenue of $5.1 million in Q2 2021,a 104% year-over-year increase. 

Research and development (R&D) expenses decreased 6.2% year-over-year to $15.2 million, while general and administrative (SG&A) expenses decreased 9.6% year-over-year to $10.4 million.

MeiraGTx posted adjusted loss of $0.46 per share in Q2, versus a loss of $0.69 per share in the year-ago quarter.

Analysts’ Take on MGTX

MeiraGTx stock commands a Strong Buy consensus rating based on three unanimous Buys. 

The average MGTX price target is $33.50, reflecting potential 12-month upside of 146.7% from current levels. 

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