Zacks Investment Research downgraded shares of DARA BioSciences, Inc. (DARA) from OUTPERFORM to NEUTRAL on April 22, 2014, with a target price of $2.00.
Last week, DARA BioSciences, Inc. (DARA) filed an amended Form S/1 with the U.S. SEC announcing its intension to raise up to $20 million in cash over the very near-term. The offering will be led by Ladenburg Thalmann and H.C. Wainwright & Co. If we assume DARA can get the deal done at $2.00 per share – which we believe will be a significant challenge that's still 10 million new shares, plus another 5 million warrants according to the S/1. DARA seeking $20 million now tells us two things: 1) There is no partnership on KRN5500, and 2) The commercial business that we originally stood strongly behind is going to take a lot longer than expected to reach profitability. This is not something we think investors should stick around to watch happen. Mea culpa, but DARA Bio is not a name we believe investors should own at this juncture.
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