SVB Leerink hammered the price target of Millendo Therapeutics (NASDAQ:MLND) to $5 from $24, but maintained its “outperform” rating, after the company’s Phase 2b trial of livoletide for the treatment of Prader-Willi Syndrome did not meet its primary endpoint, and Millendo discontinued its livoletide program.
Around mid-day on April 6, shares of Millendo were quoted at $1.49, down $3.36, or 69%, in active turnover.
“To our disappointment, Millendo did not show statistically significant improvements over placebo on its primary endpoint, hyperphagia questionnaire for clinical trials, for livoletide,” writes analyst Joseph Schwartz.
He said a dose response was not observed for the two doses tested and there was a higher than expected placebo effect. “Since the study was well-executed, well-balanced, appropriately powered, and appears as if it simply didn’t perform as expected, Millendo is discontinuing livoletide and focusing on its pipeline.”
At the end of the fourth quarter of 2019, Mr. Schwartz said Millendo reported $63.5-million in cash and guided that its cash runway extended into 2022.