WB cuts Generation Bio to market perform

Generation Bio

William Blair downgraded Generation Bio (NASDAQ:GBIO) to “market perform,” citing variability in a non-human primate study in Factor VIII production for its hemophilia program. 

In mid-morning trading, the stock was quoted at $6.57, down $7.33, or 52%, in heavier than normal turnover.

“We view the preclinical hemophilia A update as a setback in proving the translatability of the company’s intriguing platform technology in a gene therapy indication where transformative benefits have been quite difficult to make and sustain,” writes analyst Raju Prasad, Ph.D.

After speaking with management, Dr. Prasad said that while the company has made significant process on the manufacturing front and increasing its potency in mice, “non-human primates presented issues related to overcoming the innate immune system with differences in serum proteins between the species contributing to the lack of read-through.”

The company expects to provide a pipeline update in 2022, he added.

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