Revelation Biosciences Inc

Revelation Biosciences, Inc. (NASDAQ: REVB) is a clinical-stage life sciences company engaged in the development of innate immune system therapeutics and diagnostics. Its therapeutic candidates are based on its Gemini formulation of active ingredient phosphorylated hexaacyl disaccharide (PHAD), a synthetic version of monophosphoryl lipid A (MPLA) that is known to stimulate Toll-like receptor 4 (TLR-4).

Recent Business and Financial Updates

• Revelation Biosciences Secures USD4 Million Through Warrant Exercise: On December 3, 2024, Revelation Biosciences, Inc. (NASDAQ: REVB), a clinical-stage life sciences company focused on leveraging trained immunity for disease treatment, announced the execution of a definitive agreement related to the exercise of outstanding warrants. These warrants, initially issued on August 22, 2024, allow for the purchase of up to 4,064,040 shares of common stock at an exercise price of USD 1.00 per share. The transaction is expected to generate USD 4 million in gross proceeds for the company. The shares linked to this exercise are registered under an effective Form S-3 registration statement. The offering's closing is anticipated to take place on or around December 3, 2024, subject to standard closing conditions.
• Revelation Biosciences Secures FDA Acceptance for Gemini IND: On December 2, 2024, Revelation Biosciences, Inc. (NASDAQ: REVB), a clinical-stage life sciences company focused on utilizing trained immunity for disease treatment, announced the United States Food and Drug Administration's (FDA) acceptance of its investigational new drug (IND) application for Gemini. This pivotal milestone enables the company to commence its Phase 1b clinical trial in early 2025, aimed at evaluating Gemini as a preconditioning treatment for chronic kidney disease (CKD) patients.
• Corporate Developments:
  • Revelation Biosciences achieved several significant milestones recently, including the successful GMP (Good Manufacturing Practice) production of the Gemini clinical drug supply. In August 2024, the company received net proceeds of USD 3.8 million from the exercise of warrants, further strengthening its financial position. Additionally, Gemini demonstrated dose-dependent significant increases in IL-10 levels in healthy volunteers, showcasing its potential effectiveness.
  • James Rolke, Chief Executive Officer of Revelation, highlighted the company’s progress, stating, “The Revelation team continues to make significant progress on the advancement of Gemini. We look forward to the anticipated acceptance of our IND by the FDA and building on this momentum with the start of our Phase 1b study in CKD patients in the United States.”
• Financial Position:
  • As of September 30, 2024, Revelation reported USD 6.5 million in cash and cash equivalents, down from USD 12.0 million as of December 31, 2023. The reduction primarily resulted from operating expenses and payments related to the Lifesci Capital judgment, partially offset by net cash inflows from financing activities. The company projects that its current financial resources are sufficient to sustain operations into 2025, based on current operating plans and projections.
• Financial Performance:
  • For the nine months ending September 30, 2024, Revelation reported net cash usage of USD 14.6 million for operating activities, a significant increase from the USD 5.3 million recorded during the same period in 2023. The net loss for the three months ending September 30, 2024, was USD 2.2 million, translating to a USD 0.84 basic and diluted net loss per share. This represents an improvement compared to the net loss of USD 2.6 million (USD 9.94 basic and diluted net loss per share) for the corresponding period in 2023.
  • For the nine-month period ended September 30, 2024, Revelation reported a net loss of USD 13.3 million, or USD 7.38 basic and diluted net loss per share. This contrasts with the net income of USD 2.1 million, or USD 9.62 basic and USD 9.38 diluted net earnings per share, recorded in the same period in 2023. The increase in net loss reflects higher operating expenses and investments in the company's development programs.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 33.64, moving towards oversold zone, with expectations of a consolidation or a correction to next important support of USD 0.40. Additionally, the stock's current positioning is below both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term resistance levels.  

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH’ rating has been given for Revelation Biosciences, Inc. (NASDAQ: REVB) at the current market price of USD 0.49 as of December 05, 2024, at 09:30 am PST. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is December 05, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.