Cantor Fitzgerald downgraded Humanigen (NASDAQ:HGEN) to “neutral” from “overweight” and slashed its price target to $2 from $30 after a failed COVID-19 study. The stock closed at $2.99 on July 12.
The National Institute of Allergy and Infectious Diseases on July 12 informed Humanigen that preliminary topline results from the ACTIV-5/BET-B, evaluating Humanigen’s lenzilumab plus remdesivir versus placebo plus remdesivir in hospitalized COVID-19 patients did not achieve statistical significance on the primary endpoint.
Analyst Louise Chen writes that the downgrade and price target cut reflect a “lack of visibility on near-term revenue opportunities and potential catalysts.”
Ms. Chen said that while she still sees value to be unlocked for Humanigen, “we are moving to the sidelines for now until the pipeline matures.”