Dermata Therapeutics Raises $4.1M, Stock Surges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2025
0mins
Should l Buy DRMA?
Source: EFFECT
Dermata Therapeutics Inc (DRMA) saw a significant price increase of 27.96% in pre-market trading, as the stock crossed above the 5-day SMA, reflecting positive investor sentiment.
This surge is attributed to Dermata Therapeutics raising $4.1 million by issuing 2.02 million shares at $2.04 each, enhancing the company's liquidity for future growth initiatives. The funds will be used for consumer research studies, pre-launch activities for a new over-the-counter acne kit, and acquisitions of synergistic companies, indicating a proactive approach to market demands.
The successful financing and the participation of company executives in the share issuance demonstrate strong management confidence, which could further bolster investor trust and support the company's growth trajectory.
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Analyst Views on DRMA
Wall Street analysts forecast DRMA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DRMA is 10.00 USD with a low forecast of 10.00 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 1.770
Low
10.00
Averages
10.00
High
10.00
Current: 1.770
Low
10.00
Averages
10.00
High
10.00
About DRMA
Dermata Therapeutics, Inc. is a late-stage medical dermatology company. The Company is focused on identifying, developing, and commercializing pharmaceutical product candidates for the treatment of medical and aesthetic skin conditions and diseases. Its two product candidates, XYNGARI and DMT410, both incorporate its proprietary, multifaceted, Spongilla technology to topically treat a variety of dermatological conditions. Its lead product candidate, XYNGARI, is intended to utilize its Spongilla technology for once weekly treatment of a variety of skin diseases, with its initial focus being the treatment of acne vulgaris, which has a United States market size of approximately 30 million patients seeking treatment. The Company’s second product candidate, DMT410, uses its XYNGARI product candidate as a new method for needle-free intradermal delivery of botulinum toxin for the treatment of multiple aesthetic applications and medical skin diseases.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant Industry Impact: Fonar's privatization move may trigger similar actions among other medical device companies, prompting more firms in the sector to consider privatization to enhance operational efficiency and shareholder value.
- Future Strategic Direction: By going private, Fonar is expected to concentrate resources on its core business and optimize its operational model, thereby strengthening its market position and profitability in a highly competitive healthcare market.
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- Market Performance: Despite a weaker price trend in the short term, this financing could provide essential capital support, enhancing the company's operational capabilities and competitive edge in the market.
- Industry Impact: The financing initiative by TEN Holdings is particularly significant in the current economic climate, especially as investor interest in emerging markets rises, potentially attracting more attention from investors.
- Strategic Outlook: Through this private placement, TEN Holdings not only improves its capital structure but also lays the groundwork for future expansion and innovation, thereby enhancing its position within the industry.
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- Acquisition Agreement Signed: Fonar Corp. revealed it has signed a definitive agreement for a “take private” sale, resulting in a 24% surge in shares to $18.18 in after-hours trading, reflecting investor optimism regarding the company's privatization prospects.
- FDA Application Submitted: CapsoVision Inc. submitted its 510(k) application for its proprietary AI-assisted module to the FDA, although shares dipped 11% to $11.58 on Monday, this development may pave the way for future market access.
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- Shareholder Approval Context: The final ratio for the reverse split was approved by the board in mid-December, despite having received shareholder support at the July annual meeting, yet the market's response raises questions about the company's governance and strategic direction.
- Industry Impact: The sharp decline in Aptevo's stock price may affect its competitive position in the biopharmaceutical sector, particularly regarding financing and partnership opportunities, as investors may reassess its investment value.
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- Use of Proceeds: The funds raised will be allocated for consumer research studies, pre-launch activities for a new over-the-counter acne kit, acquisitions of synergistic companies, and development of emerging technologies, aimed at improving product competitiveness and accelerating company growth.
- Insider Participation: Dermata's executives, including the CEO and CFO, are participating on the same terms as other investors, demonstrating management's confidence in the company's future and potentially increasing investor trust in the firm.
- Market Performance: Over the past year, DRMA's stock price fluctuated between $1.96 and $23.7, closing 16.18% higher at $2.37 on Wednesday, reflecting a positive market reaction to the financing and the company's outlook.
See More
