AEterna’s missed Phase 3 gets ho-hum analyst reaction

Analysts are not surprised that Aeterna Zentaris’ cetrorelix drug candidate missed its primary endpoint in a Phase 3 clinical trial in Europe, matching the disappointing outcome of a similar pivotal trial in the U.S. earlier this year.

RBC Capital Markets now expects AEterna (NASDAQ:AEZS; TSX:AEZ) to terminate the cetrorelix program and focus on its other assets, including perifosine, AEZS-108, and AEZS-130, which are in Phase 3, 2, and 1, respectively.

Analyst Doug Miehm figures the stock will likely remain “range bound, as there are limited upcoming catalysts.”  He reiterated a “sector perform” rating on the stock and $1 (U.S.) target price.

Versant Partners analyst Doug Loe writes that the Phase 3 outcome is neutral to his valuation because expectations on cetrorelix’s performance were modest considering the U.S. results.  Since the drug was not in his revenue forecasts, he stuck with his “neutral” rating on the stock and $1 price target.

The stock has slid 19% or 21 cents to 91 cents on the NASDAQ Monday afternoon.