Buy Rating for Unicycive Therapeutics: Strong Market Potential Despite Vendor Compliance Issue

H.C. Wainwright analyst Swayampakula Ramakanth has reiterated their bullish stance on UNCY stock, giving a Buy rating on June 4.

Swayampakula Ramakanth has given his Buy rating due to a combination of factors that support the potential of Unicycive Therapeutics. Despite a compliance issue identified by the FDA with a third-party vendor involved in the manufacturing process, the core thesis remains intact as no safety or efficacy concerns have been raised regarding the drug OLC. The company is actively working to resolve the vendor issue and anticipates a regulatory decision by the PDUFA date, with a worst-case scenario being a minor delay.
Additionally, Unicycive has demonstrated financial prudence by securing a significant funding commitment of $103 million from accredited investors, which will aid in the drug’s commercialization upon approval. The company’s cash reserves are deemed sufficient to support ongoing operations, reinforcing confidence in its ability to launch the drug effectively. The unmet medical need for managing hyperphosphatemia further underscores the market potential for OLC, which is expected to achieve peak revenues in the coming years.

In another report released on June 4, Lucid Capital also initiated coverage with a Buy rating on the stock with a $12.00 price target.