Chardan Capital lowers Prime Medicine's PT to $10 from $12, maintains Buy rating.

Chardan Capital lowers Prime Medicine's PT to $10 from $12, maintains Buy rating.

July 02, 2025

Chardan Capital has revised its price target for Prime Medicine (PRME) from $12 to $10, while maintaining a "Buy" rating. The move reflects the investment bank's assessment of the company's progress and the evolving landscape of gene therapy development.

Prime Medicine recently raised $144.2 million through a 43.7 million share offering priced at $3.30 per share, extending its operational runway to mid-2026 [1]. The capital infusion is expected to support the company's clinical programs, including Wilson's Disease and Chronic Granulomatous Disease (CGD), ahead of pivotal data readouts.

The capital strategy combines public equity with targeted partnerships, such as a $24 million agreement with the Cystic Fibrosis Foundation, which provides both funding and scientific validation for Prime Medicine's G542X mutation therapy [1]. This dual approach of public equity and institutional partnerships is seen as a strategic maneuver to reduce R&D costs and de-risk gene therapy development across multiple disease categories.

Chardan Capital's adjustment in the price target comes amidst a mix of investor sentiment. While some investors are optimistic about the company's innovative technology and early clinical data, others have expressed concern over the dilution impact on existing shareholders following the recent public offering [2]. The stock price has seen a significant drop since the announcement, reflecting these conflicting views.

The investment bank's "Buy" rating suggests that Chardan Capital remains bullish on Prime Medicine's long-term prospects, despite the downward revision in the price target. The key inflection points for investors will be the 2025 clinical data readouts and the 2026 regulatory submissions, as these milestones will test the company's ability to navigate the FDA's complex gene therapy approval process [1].

Prime Medicine's ability to attract mission-driven capital and establish strategic partnerships is seen as a significant advantage. The company's focus on one-time curative therapies aligns with a growing market demand for durable treatments, and its modular platform strategy offers cross-therapeutic applicability, reducing R&D costs per indication [1].

For investors with a long-term horizon, the coming months will be crucial in determining whether Prime Medicine can execute its vision while maintaining financial discipline. The company's foundations are in place for a potentially transformative impact on genetic medicine, but the path remains fraught with clinical and regulatory risks.

References:
[1] https://www.ainvest.com/news/prime-medicine-144-2m-equity-raise-strategic-implications-2508/
[2] https://www.quiverquant.com/news/Prime+Medicine+Stock+%28PRME%29+Opinions+on+Recent+Public+Offering