First Wave BioPharma price target lowered to $36 from $40 at Roth MKM

Roth MKM analyst Jonathan Aschoff lowered the firm’s price target on First Wave BioPharma to $36 from $40 but keeps a Buy rating on the shares. The company acquired ImmunogenX to gain almost Phase 3-ready latiglutenase for celiac disease and intends to license the U.S., Canadian, and South American commercial rights to latiglutenase to an already identified, but undisclosed, strategic global pharmaceutical company, with which it presently has a nonbinding letter of intent, the analyst tells investors in a research note. The firm is adjusting its model on First Wave as the company will now seek to secure financing commitments from a syndicate of institutional healthcare investors in the second half of the year to fund the pivotal program and regulatory requirements to attain latiglutenase approval.