Pfizer Collaboration Offers Potential Milestone Windfalls For TBIO, Despite Financial Hurdles: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
KeyBanc Capital Markets analyst Paul Knight has downgraded Telesis Bio, Inc. (TBIO) to Sector Weight from Overweight, despite TBIO slightly exceeding consensus in 2Q23 results and progress in its technical collaboration with Pfizer, Inc. (PFE). The downgrade is due to limited top-line visibility and significant dilution from raising capital through an equity plus-warrant transaction. TBIO expects two more technical milestone achievements of ~$2.5 million each, one in 2H23 and the final in FY24. Pfizer has the option to trigger additional charges if the products meet certain clinical milestones.
August 11, 2023 | 7:09 pm
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NEUTRAL IMPACT
Pfizer, Inc. is in a technical collaboration with Telesis Bio, Inc., which has shown progress. Pfizer has the option to trigger additional charges if the products meet certain clinical milestones.
The progress in the technical collaboration with TBIO is a positive sign for Pfizer. However, the potential additional charges if the products meet certain clinical milestones could be a financial risk for the company.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Telesis Bio, Inc. has been downgraded by KeyBanc Capital Markets due to limited top-line visibility and significant dilution from raising capital. However, the company expects two more technical milestone achievements in collaboration with Pfizer.
The downgrade by KeyBanc Capital Markets is likely to negatively impact TBIO's stock price in the short term. However, the expected technical milestone achievements in collaboration with Pfizer could potentially offset this negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100