ChitogenX Inc (CSE:CHGX, OTCQB:CHNXF)’s chitosan biopolymer technology has a myriad of opportunities according to analysts at Noble Capital analysts who have reiterated their ‘Outperform’ rating for the stock.
Following the release of the company’s 3Q 2023 results for the period ending October 31, 2022, on Thursday the analysts also reiterated their C$1.35 and US$1.05 price targets for ChitogenX shares, which currently trade at about C$0.25 and US$0.17.
The analysts noted that, as expected, no revenue was reported by ChitogenX. “Overall, expenses were higher than expectations, with lower-than-expected G&A and R&D expenses reported," they said in a note to clients.
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“Fair value adjustments in embedded derivatives, higher share-based compensation and financing costs accounted for the difference in reported loss per share of $0.04 vs. our expected $0.03 loss per share,” they added, pointing out that they have amended their full fiscal year 2023 loss per share forecast from $0.10 to $0.11.
Furthermore, the analysts noted a memorandum of understanding that ChitogenX signed in October 2022 with the California Medical Innovations Institute to pursue proprietary regenerative medicine solutions.
“We expect substantial news flow from the company for potential regenerative medicine applications and the orthopedic indications over the next 12 months,” they said.
In their valuation summary, the analysts said they believe ChitogenX has developed a low-cost matrix biopolymer product platform that initially could substantially improve the success rate of orthopedic tendon and cartilage repair procedures, but also eventually expand into other soft tissue surgical areas.
“We view ChitogenX's market opportunity as above average, with the size of the market opportunity and potential market share as strong positives but offset by larger and better-capitalized competition,” they concluded.
ChitogenX, formerly Ortho Regenerative Technologies Inc, is a publicly traded clinical-stage regenerative medicine company dedicated to the development of novel therapeutic tissue repair technologies to improve tissue healing.
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