Lyra Therapeutics (LYRA) Reiterated at Outperform by William Blair, Company Poised to Become a Major Player, Significant Disconnect in Valuation Exists, Remains Favorite Small-Cap Name,

William Blair analyst Tim Lugo reiterated an Outperform rating and {REMOVEPT} price target on Lyra Therapeutics (NASDAQ: LYRA)

The analyst quotes: "We believe Lyra is poised to become a major player in the treatment of pre- and post-surgical CRS as the company holds a differentiated technology platform that provides localized and sustained treatment of CRS with a single administration. In our opinion, the company holds less clinical risk than many of its peers given that the active ingredient of LYR-210 and LYR-220 is mometasone furoate (MF), which has been approved for use by the FDA in several indications and nasal spray formulations that are currently part of the standard of care for CRS, especially with PK data in hand that will provide a bridge to the safety profile of MF and supports a 505(b)(2) pathway for NDA submission. We also believe that the impressive Phase II data for LYR-210 de-risks the program and validates the six-month treatment duration provided with a single administration, offering a significant advantage over existing therapies, which can be efficacious but are limited by invasive administration, imperfect distribution within the paranasal sinuses, and burdensome dosing schedules that are compounded by poor patient compliance. Ahead of the enrollment completion and initial safety and feasibility data for BEACON, we anticipate the company will need to raise capital, and currently model a modest $20 million raise in the second quarter of 2022 and would anticipate a raise to remove an overhang on shares. We rate shares of Lyra Outperform, based on our view that LYR-210 has the potential to see significant use in this large population of about 4 million patients, considering the improved convenience over existing therapies and potentially improved efficacy. We do not believe this is reflected in the current enterprise value of about $10 million, which to us represents a significant disconnect in value, and Lyra remains a favorite small-cap name under our coverage."

For an analyst ratings summary and ratings history on Lyra Therapeutics click here. For more ratings news on Lyra Therapeutics click here.

Shares of Lyra Therapeutics closed at $4.30 yesterday.

By Vlad Schepkov | [email protected]

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