2. Lyra Therapeutics, Inc. (NASDAQ:LYRA)
Number of Hedge Fund Investors: 27
Lyra Therapeutics, Inc. (NASDAQ:LYRA), a clinical-stage biotechnology company, specializes in the development and commercialization of innovative integrated drug and delivery systems for the localized treatment of patients with ear, nose, and throat diseases. It’s XTreo technology platform is intended to deliver medications directly to the damaged tissue for extended periods of time with a single dose. The company’s product candidates include LYR-210, an anti-inflammatory implanted drug matrix for the treatment of chronic rhinosinusitis (CRS), which is in Phase III clinical trials, and LYR-220 for CRS patients with or without nasal polyps. It has signed a partnership agreement with LianBio Inflammatory Limited to develop and commercialize LYR-210 in mainland China, Hong Kong, Taiwan, Macau, South Korea, Singapore, and Thailand. The company generates collaboration revenue.
Four years ago, the stock price of this company was $18.56; today, it is only $0.29. Its market capitalization is currently $16.50 million, however, three years ago, its value was over $147.40 million. It has lost 98% of its value as of July 10. LYRA is a cash-burning company with a high burn rate and poor sales. It has lost about $22 million in cash since 2020, and its sales need to be stronger to make up for this deficit. When the company’s phase 3 study for LYR-210 failed to reach the primary goal, shares fell by 92% in May 2024. The firm is planning rapid labor cutbacks and operational modifications in order to preserve cash. For example, it recently announced the implementation of a layoff of approximately 75% of its workforce.
Positive updates from phase 2 trials and perhaps good phase 3 findings have resulted from Lyra Therapeutics’ (NASDAQ: LYRA) unique XTreo technology. The company’s cash balance is $104.15 million, allowing it to operate until 2025. In Q1 2024, LYRA’s financial growth was noteworthy. Revenue climbed by 29.76% from $410,000 to $532,000 in the same quarter of the previous year. Advances and promising results from clinical studies, especially the ENLIGHTEN 1 Phase 3 study of LYR-210 in chronic rhinosinusitis (CRS), contributed to Lyra Therapeutics increased revenue. Furthermore, there were no unfavorable product-related occurrences, indicating a positive safety profile for the company.
LYRA’s annual revenue has been consistently growing YoY over the past three years, by 378.25% in 2022, 14.31% in 2023, and 28.74% in TTM. Lyra Therapeutics, Inc (NASDAQ: LYRA) in the mental health industry is constantly making efforts to make mental care accessible to as many patients across the nation as possible. Hence, analysts are bullish, and they believe that the company’s efforts are yielding results in the financial area.
Currently trading at $0.29, Lyra Therapeutics, Inc. (NASDAQ:LYRA) has an average price target of 4.50 and a “buy” recommendation from analysts, suggesting an upside potential of 1,437.41% for investors.
27 out of the 920 hedge funds in Insider Monkey’s database had stock in LYRA. Joseph Edelman’s Perceptive Advisors is the largest stakeholder in the company, with 12,757,562 shares worth $79.35 million.
