Catalyst Biosciences still needs financing post merger, says Raymond James

Raymond James analyst Timur Ivannikov keeps a Market Perform rating on Catalyst Biosciences after the company and GNI Group announced plans for a reverse merger transaction which will result in Catalyst shareholders owning 2.5% of the post-transaction company. Despite profitability, the post-transaction Catalyst Biosciences will require additional financing to develop hydronidone in nonalcoholic steatohepatitis, Ivannikov tells investors in a research note. The analyst thinks hydronidone’s success in NASH is uncertain even if Phase 3 development in congenital heart block associated fibrosis is successful in China.