BTIG reduced its price target for Synlogic (NASDAQ:SYBX) to $9 from $22 after the company discontinued development of SYNB1020, an early-stage clinical product candidate for the treatment of hyperammonemia. The stock closed at $4.83 on Aug. 19.
The decision to discontinue the program was based on top-line data from an interim analysis of 23 patients with cirrhosis and elevated blood ammonia in a placebo-controlled Phase 1b/2a study. There was no evidence of blood ammonia lowering or changes in other exploratory endpoints relative to placebo.
Analyst Thomas Schrader writes that on the positive side, “the safe delivery of this many bacteria [in the study] is a positive and read through positively for the development of SYNB1618 for phenylketonuria (PKU).”
In that study, based on markers of PKU destruction, he said the main goal is to increase the dose and bacterial enzymatic activity. “Based on company presentations, the dose reported today for SYNB1020 should have a meaningful effect on PKU levels. We remain positive on the overall approach,” he added.
