UPDATE: H.C. Wainwright Starts Dare Bioscience (DARE) at Buy, $5 PT

December 18, 2020 6:11 AM EST
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Price: $1.80 --0%

Rating Summary:
    5 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 5 | New: 12
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(Updated - December 18, 2020 7:00 AM EST)

H.C. Wainwright analyst Douglas Tsao initiates coverage on Dare Bioscience (NASDAQ: DARE) with a Buy rating and a price target of $5.00.

The analyst commented, ". Daré Biosciences, Inc. is a clinical-stage women’s health company. We are most excited about contraceptive, Ovaprene, and think it has a combination of features the many women seek, and anticipate broad appeal among the 40% of women unsatisfied with their current contraceptive method. Despite an attractive collection of assets, we believe Daré has largely been overlooked by investors, which we attribute to women’s health being out-of-favor with investors—though Amag Pharmaceutical’s recent acquisition by the Covis Group shows continued strategic interest in the segment—and the company’s entrance into public markets through a reverse merger, which left it without a strong cash runway. While investors haven’t paid much attention to Daré, the company’s partnership with Bayer, a leader in contraceptives and women’s health, should be reason to draw investor focus as it offers key validation for Ovaprene’s market opportunity. The company has further demonstrated its acumen with Daré-BV1, a topical treatment for bacterial vaginosis (BV), which recently reported strong Phase 3 data and sets up the company for an NDA filing in mid-'21 as well as signing another validating product partnership, which would be a catalyst for shares. Given BV1’s best-in-class efficacy and patient-friendly administration compared to available products, we think Daré should be able to obtain strong terms for a partnership, which should address concerns over market size. Likewise, this could help address the financing overhang that has kept some investors on the sidelines. Sildenafil cream 3.6%, a topical formulation of the active ingredient in Viagra, for the treatment of female sexual arousal disorder (FSAD), also has meaningful revenue potential. While studies have validated sildenafil cream’s pharmacodynamic effects, there’s admittedly some risk around the ability to demonstrate clinical improvements in arousal since prior studies attempting to do so have yielded mixed results. However, as the company executes on BV1 and Ovaprene, we think investors are going to be more willing to embrace sildenafil cream’s optionality. In addition, Daré has several interesting preclinical early-stage assets whose development we expect to ramp up as the company’s financial position is fortified. That could start to come with a BV1 partnership which we expect to see by mid-’21, which we see as a key catalyst for shares. We initiate with a Buy and $5 price target."

For an analyst ratings summary and ratings history on Dare Bioscience click here. For more ratings news on Dare Bioscience click here.

Shares of Dare Bioscience closed at $1.13 yesterday.


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