BioTuesdays

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.

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