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JMP Securities lowered its score on Athira Pharma (NASDAQ:ATHA) to Market Carry out from Market Outperform after the clinical-stage biotech stated that its lead product candidate, fosgonimeton, didn’t meet key objectives in a mid-stage trial for mild-to-moderate Alzheimer’s disease (AD).
Whereas the corporate famous an enchancment of sure scientific parameters in a pre-specified subgroup evaluation of sufferers, the JMP analysts led by Jason N. Butler questioned the reproducibility of the impact.
Hovering greater than 40% under the agency’s estimate of money for the top of 2Q 2022, Athira’s (ATHA) valuation appears honest given the stress on biotech as a big variety of corporations are buying and selling under money, the staff argued.
“The chance/reward profile for the inventory is extremely positively skewed ought to the subgroup findings be replicated within the LIFT-AD trial,” the analysts added, referring to an ongoing late-stage trial for fosgonimeton in mild-to-moderate Alzheimer’s.
Nonetheless, further visibility is required on plans/timing of LIFT-AD to develop into extra constructive on the inventory, based on analysts. “….Administration has dedicated to offering extra data in coming weeks, which we view as a crucial place to begin,” they added.
After the trial outcomes, Wall Road turned modestly bullish on Athira (ATHA) inventory, with a median rating of Buy from analysts consistent with Looking for Alpha Author ratings. Nonetheless, Looking for Alpha’s quant system, which consistently beats the market, rated ATHA as a Hold.
