Virios Therapeutics (VIRI) PT Raised to $5 at H.C. Wainwright

H.C. Wainwright analyst Sean Lee raised the price target on Virios Therapeutics (NASDAQ: VIRI) to $5.00 (from $0.20) while maintaining a Neutral rating.

The analyst commented: "On October 7, Virios announced a definitive merger agreement with Vancouver-based Wex Pharmaceuticals in an all-stock transaction. Wex is a wholly owned subsidiary of CK Life Sciences that is developing Halneuron, a non-opoid painkiller for the treatment of chemotherapy-induced neuropathic pain (CINP). The combined entity is expected to be named Dogwood Therapeutics and trade on the NASDAQ market under the ticker DWTX starting October 9. According to the merger agreement, Virios is also expected to undertake a 25-to-1 reverse stock merger effective October 9. Current Virios shareholders are expected to account for approximately 6% of the Dogwood on a fully diluted basis, while CKLS is expected to account for the remaining 94%. Existing VIRI shareholders are also expected to receive a contingent value right (“CVR”) related to any potential future milestone payments received for IMC-1 and IMC-2. Finally, we note that CKLS has agreed to loan $19.5M to newly created Dogwood through an affiliate, which we believe could extend the company’s cash runway into 2026. As a result of the announced 25-to-1 reverse split, we are adjusting our 12-month price target to $5.00 per share, up from $0.20."

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