Stifel cuts Concert Pharma to hold; PT to $8 from $18

Concert Pharma

Stifel downgraded Concert Pharmaceuticals (NASDAQ:CNCE) to “hold” from “buy” and lowered its price target to $8 from $18 after the company reported a Phase 3 trial failure with its AVP-786 drug candidate in Alzheimer’s agitation.

Near the close on Sept. 27, the stock was quoted at $6.28, down $3.58, or 36%.

“We had long been fans of AVP-786 based on key opinion leaders’ feedback and our analysis of available data, including recent positive Phase 3 data – and are surprised by the negative outcome,” writes analyst Adam Walsh.

A press release from Concert’s partner, Avanir Pharmaceuticals, disclosed little beyond the top-line failure, but with AVP-786 having missed on both the primary and key secondary endpoints, “we think the program’s prospects look dim and the drug is now a show-me story at best, with data from a third AVP-786 Phase 3 study not due until the second half of 2021,” he added.

“We are completely removing AVP-786 milestones/royalties from our model and revaluing the shares based solely on proprietary pipeline products, CTP-543 and CTP-692,” Mr Walsh said.

Sign up for the BioTuesdays weekly newsletter

Get the latest news on the healthcare industry’s corporate and clinical developments, executive moves, and market updates. Every Tuesday, in your inbox.