UPDATE: Oppenheimer Cuts Target to $19 on Derma Sciences

Oppenheimer lowers its price target from $21 to $19 on Outperform-rated Derma Sciences

following the completion of its latest capital raise. Oppenheimer comments, "On 4/2, DSCI announced the completion of a registered direct offering of 2,125,000 shares priced at $9.25/share, representing a net capital raise of $17.9M. We note that pro-forma cash balances of ~$25.7M and incremental cash flows related to realization of full economics of TCC-EZ, provide DSCI with a comfortable cash position eliminating risk that DSCI is pressured into unfavorable terms in establishing an ex-US commercial partner for DSC127. We continue to expect DSCI to begin enrollment in a Phase III study of DSC127 in 4Q12 and expect data read-out by YE2014. Importantly, owing to the dilutive nature of this financing, we are lowering our PT to $19 (from $21) but maintain our Outperform rating." DSCI closed at $9.62 a share on Monday.