Leerink downgraded Regulus Therapeutics (NASDAQ:RGLS) to “market perform” from “outperform” and slashed its price target to 35 cents from $2 after the company announced that both of its lead clinical programs are on hold. The stock closed at 36 cents on July 9.
On July 7, with the stock quoted at 73 cents, Regulus also outlined a corporate restructuring aimed at extending the company’s cash runway to mid-2019. By trimming its workforce by about 60% and voluntarily placing a pause on its Alport program, the company believes it may realize savings of about $20-million, writes analyst Joseph Schwartz.
Regulus’ voluntary pause for its lead clinical programs in Alport and autosomal dominant polycystic kidney disease (ADPKD) was unexpected, and the path for future development is unclear,” he added.
In addition, he said the company is seeking to redefine the terms of its Alport partnership with Sanofi and focus its preclinical activities on targets for hepatitis B virus.
