Leerink downgraded Adocia (NXT PA:ADOC.FP) to “market perform” and slashed its price target to €15.00 from €82.00 after Eli Lilly terminated its collaboration for Adocia’s ultra-fast insulin product, BioChaperone Lispro.
“This collaboration was critically important to our valuation and overall forecast assumptions and is a serious blow to our thesis,” writes analyst Seamus Fernandez.
“Best case, Adocia successfully repositions and re-partners BC Lispro, but we are concerned that a similar deal can be struck and, without LLY driving the switch to the new brand, peak sales are likely to be a fraction of what we had forecast,” he said.
“In the wake of this blow to Adocia’s operating model and our overall assumptions, we can no longer recommend the stock until visibility on a new partner emerges,” he added.
