H.C. Wainwright downgrades Portage Biotech on financing overhang

H.C. Wainwright analyst Robert Burns downgraded Portage Biotech to Neutral from Buy without a price target. Last week, Portage announced that, after a strategic review of its pipeline and resources, the company has decided to pause further drug development in the PORT-2 iNKT program, the analyst tells investors in a research note. The firm believes Portage’s potential cash position could provide an operational runway into Q3 of 2024. As such, Portage is going to have to raise additional capital in the near term, according to H.C. Wainwright. The firm says the company’s ability to raise meaningful capital likely hinges on the initial Phase 1a data release for PORT-6, which is expected in mid-2024. It cites the company’s financing overhang for the downgrade.