H.C. Wainwright downgraded Celyad Oncology (NASDAQ:CYAD) to “neutral” from “buy” and removed its price target after the company paused dosing and enrollment in its Phase 1b KEYNOTE-B79 study.
Shares of Celyad were quoted at $2.85, down 37 cents, or 11%, around mid-day on Feb. 28.
The voluntary pause of dosing and enrollment in the Phase 1b study followed reports of two fatalities that presented with similar pulmonary findings, writes analyst Edward White.
The trial is evaluating the combination of CYAD-101 with Keytruda in metastatic colorectal cancer patients with microsatellite stable/mismatch-repair proficient disease.
Mr. White said that Celyad is currently investigating the reports of fatalities in the study and is evaluating similar events in additional patients treated. The company also is reaching out to regulatory agencies and expects to provide additional updates on the trial soon.
“With the potential safety issue in the KEYNOTE-B79 trial and the pausing of the trial, we are removing CYAD-101 from our valuation until we find out whether the study can continue,” Mr. White added.
