Processa Pharmaceuticals price target lowered to $2 at H.C. Wainwright

Investing.com - H.C. Wainwright lowered its price target on Processa Pharmaceuticals (NASDAQ:PCSA) stock to $2.00 from $6.00 on Monday, while maintaining a Buy rating on the shares. The stock, currently trading at $0.20, has declined over 90% in the past year, according to InvestingPro data.

The price target reduction follows dilution from a recent equity financing and consideration of the company’s future cash requirements, according to the research firm. InvestingPro analysis shows the company maintains a healthy current ratio of 2.93, though it’s quickly burning through cash. Get access to 12 more exclusive ProTips and detailed financial metrics with InvestingPro.

Processa Pharmaceuticals is currently conducting a Phase 2 trial evaluating NGC-Cap for the treatment of advanced or metastatic breast cancer, with interim data expected to be released in the second half of 2025, likely early in the fourth quarter.

The Phase 2 study is a global, multi-center, open-label trial comparing two different doses of NGC-Cap to FDA-approved monotherapy capecitabine in 60 to 90 patients with advanced or metastatic breast cancer.

H.C. Wainwright expressed optimism that the Phase 2 trial will build upon positive Phase 1b results previously observed with NGC-Cap, noting the study is designed to evaluate safety-efficacy profiles, determine optimal dosage regimens as required by the FDA Project Optimus Initiative, and explore possibilities for personalizing NGC-Cap therapy.

In other recent news, Processa Pharmaceuticals has announced significant developments in its business and research activities. The company has entered into a binding term sheet with Intact Therapeutics for an exclusive option to license PCS12852, a drug developed for gastroparesis and other gastrointestinal disorders. This agreement could provide Processa with up to $20 million in development and regulatory milestone payments and over $432.5 million in commercial milestone payments based on net product sales. Intact Therapeutics will also pay a double-digit royalty on worldwide net sales, excluding South Korea, and offer Processa an equity stake upon closing.

Additionally, Processa presented three abstracts at the 2025 American Society of Clinical Oncology (ASCO) Annual Meeting, showcasing updates on their Next Generation Cancer drug candidates, PCS6422 and PCS11T. The presentations included a Phase 2 trial for PCS6422, aimed at treating advanced breast cancer, and insights from a Phase 1b trial that established dosing parameters. These developments reflect Processa’s focus on enhancing cancer treatment efficacy and safety through their Regulatory Science Approach. The company also cautioned about the risks and uncertainties associated with these forward-looking statements, advising investors to review risk factors in their SEC filings.

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