Earlier today, VYNE Therapeutics Inc (NASDAQ:VYNE) released new preclinical data showing the positive effect of its VYN202 in preclinical models of psoriasis and rheumatoid arthritis.

VYNE expects to submit its IND for VYN202 by year-end 2023 and commence a first-in-human Phase 1a single ascending dose/multiple ascending dose trial in the first quarter of 2024. 

If successful, VYNE anticipates commencing Phase 1b trials in moderate-to-severe plaque psoriasis and moderate-to-severe adult-onset rheumatoid arthritis in the second half of 2024.

VYNE Therapeutics also announced private placement financing of $88 million.

HC Wainwright says it is encouraged by these data. 

While still in the early stages of clinical development, these findings strongly emphasize the therapeutic advantages of VYN201 for individuals with vitiligo, HC Wainwright writes.

Coupled with its favorable safety and tolerance record, VYN201's potential as a sought-after treatment for these patients steadily grows. Analysts Joseph Pantginis, Matthew Keller, and Sara Nik also see these results as a significant turning point for the company.

HC Wainwright maintains the Buy rating but reduced the price target to $5.75 from $28 based primarily on the adjustment to fully diluted share count based on significant dilution from the equity and warrant raise and increase in projected chance of success for VYN201 in vitiligo to 15% from 5%.

Price Action: VYNE shares are up 25.40% at $2.81 on the last check Monday.