Why Greenlight Biosciences Stock Was in the Red Today

What happened

Shares of Greenlight Biosciences (NASDAQ:GRNA) were down 13.4% as of the market close on Thursday. The decline appears to be the result of a Bloomberg Dealreporter report that said the drugmaker turned down an opportunity for a private-equity firm to take it private.

So what

Greenlight's shares rose a little at first earlier in the day on news that the company was rejecting private-equity suitors. However, investors apparently changed their minds about the wisdom of the move, and the stock turned south later in the morning.

Perhaps surprisingly, the biotech stock fell even with other good news today. Canaccord Genuity initiated coverage on Greenlight with a buy rating and a price target of $4. That price target is more than three times higher than the stock's closing price on Wednesday.

Ultimately, though, nixed deals and analysts' takes aren't as important for Greenlight as its underlying business. The company has a promising RNA platform but no products on the market yet. Greenlight's cash stockpile stood at $98.4 million at the end of the third quarter. These funds will probably only carry the company through the second quarter of 2023.

Now what

The coming year should be pivotal for Greenlight. The company hopes to win regulatory approval for an RNA pesticide to protect against the Colorado potato beetle in the first half of 2023.

It plans to file for approval of an RNA product that could protect honeybees from the Varroa destructor mite next year. Greenlight also expects to reveal a development candidate for a messenger RNA shingles vaccine in 2023.

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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.