BTIG cuts ASLAN Pharma to neutral; removes PT

ASLAN Pharmaceuticals

BTIG downgraded ASLAN Pharmaceuticals (NASDAQ:ASLN) to “neutral” from “buy” without a price target after the company posted top-line data for Varlitinib, a pan-HER inhibitor, in its Phase 3 TREETOP study in second-line biliary tract cancer. The stock was quoted at 84 cents, down $1.23, in early trading on Nov. 11.

“This data had the potential to be a transformative catalyst for ASLAN, though the readout was not positive” and “did not reach significance,” writes analyst Robert Hazlett.

ASLAN noted that a subgroup (not defined) appeared to show some benefit in the study, and the company will examine if there is a development path forward with the subgroup, he added.

In addition, an investigator-initiated program is enrolling a study with Varlitinib in second-line gastric cancer.

“Despite these efforts, with the TREETOP results in hand, we now remove estimates for Varlitinib in the U.S. and globally,” Mr. Hazlett pointed out. “Though we are intrigued by the potential for ASLAN004 in atopic dermatitis … Varlitinib’s potential revenue and profit represented the bulk of our prior valuation.”

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