Wedbush Reiterates Underperform On Regado Following Discontinuation Of REGULATE-PCI


In a report issued yesterday, Wedbush analyst Liana Moussatos reiterated an Underperform rating on Regado Bioscoences (NASDAQ:RGDO) and reduced her price target to $1 (from $2), following the news that the Data Safety Monitoring Board (DSMB) recommended permanently discontinuing enrollment in the company’s pivotal Phase 3 trial testing Revolixys Kit (REG1) as a more precisely controlled anticoagulant system for PCI, due to serious allergic adverse events outweighing the benefit.

Moussatos noted: “We are removing the remaining pipeline candidates from our projections. Because REG2 is a subcutaneous formulation of the active ingredient in Revolixys Kit (pegnivacogin), we believe REG2 is also at risk for discontinuation. The remaining REG3 asset has a different active ingredient and target (GPVI inhibitor); however, it is also an IV-delivered aptamer system which may also be at risk for serious allergic adverse events. Consequently, we believe Regado’s management team will need to rethink their overall company strategy to develop aptamers to control thrombosis. The company ended Q2 2014 with about $72.7 million in cash and equivalents and we have reduced cash burn which extends runway through 2016.” 

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Liana Moussatos has a total average return of 58.1% and a 75.6% success rate. Moussatos has a 19.0% average return when recommending RGDO, and is ranked #9 out of 3261 analysts. 

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