Goldman Sachs Analyst Reinstates Sell Rating on DBV Technologies Amid VP Treatment Risks

On May 28, Goldman Sachs analyst Rajan Sharma reinstated his sell rating on DBV Technologies S.A. (NASDAQ:DBVT) and set the price target at $7.25. The analyst has a sell rating despite the company making significant progress on the development of Viaskin Peanut (VP) allergy treatment

A clinical researcher in a lab examining a new biopharmaceutical product.

The analyst remains wary of DBV Technologies’ challenges in commercializing the flagship treatment. He disagrees with the company’s decision to commercialize the VP treatment independently. That’s because the market could be cautious given the treatment’s inconsistent development history.

Even though Phase 3 VITESE trial results are expected to be positive, the analyst does not expect the stock to edge higher significantly. The remarks come on the stock posting a six-month gain of about 140%. In addition, Goldman Sachs has raised concerns that a potential exercise of warrants could lead to significant dilution. Consequently, investors will have limited incentives to buy into the stock.

Goldman Sachs’s Sell rating affirms growing concerns that the commercial execution risks of the VP treatment will take a significant toll on the stock’s sentiments. Additionally, it underscores the investment bank’s conviction of limited appeal for new investors to get involved before the release of the VITESSE trial results.

DBV Technologies is a biopharmaceutical company that focuses on developing treatment options for food allergies and other immunologic diseases. It is best known for the Viaskin patch technology, which utilizes epicutaneous immunotherapy (EPIT) to re-educate the immune system through the skin.

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Disclosure: None.