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Investing.com - H.C. Wainwright lowered its price target on Fractyl Health Inc (NASDAQ:GUTS) to $8.00 from $9.00 on Monday, while maintaining a Buy rating on the stock. According to InvestingPro data, analyst targets for GUTS range from $3.60 to $10.00, with the stock currently trading at $1.34 after surging 35% in the past week.
The adjustment follows Fractyl’s September 27 announcement of positive midpoint results from its pivotal REMAIN-1 clinical trial, which evaluates the Revita DMR procedure for weight management after patients discontinue GLP-1 receptor agonist medications.
The trial data showed that patients who received the Revita procedure lost an additional 2.5% total body weight three months after stopping tirzepatide, while those who received a sham procedure regained 10% of their weight, demonstrating statistical significance with a p-value of 0.014.
H.C. Wainwright noted that these results exceeded management’s expectations and validated both the efficacy and safety of the one-time Revita DMR procedure, which appears to not only maintain but induce drug-free weight loss after GLP-1 discontinuation.
The REMAIN-1 trial demonstrated strong execution with 100% patient retention through three months, with topline six-month data anticipated in the second half of 2026, according to the research firm.
In other recent news, Fractyl Health has priced an underwritten offering of 60 million shares of its common stock at $1.00 per share, aiming to raise approximately $60 million in gross proceeds. This financial move comes alongside promising data from a pilot study of Fractyl’s Revita procedure, which showed significant results in preventing weight regain after discontinuation of GLP-1 medications. The study reported that patients treated with Revita lost an additional 2.5% of body weight three months after stopping tirzepatide, compared to a 10% weight regain in those who received a sham procedure.
Analyst activity around Fractyl Health includes H.C. Wainwright initiating coverage with a Buy rating and a $9.00 price target, citing the company’s transformative approaches to obesity and Type 2 diabetes. Meanwhile, Canaccord Genuity lowered its price target for Fractyl to $6.00 from $12.00 but maintained a Buy rating, considering the company’s recent financial report and clinical program timelines. Additionally, Fractyl Health announced changes to its board of directors, appointing Christopher Thompson, M.D., and Ian Sheffield to new positions. Both directors will receive annual compensation and stock options as part of their roles.
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