SunTrust Downgrades Cempra Inc (CEMP) Amid Manufacturing Issues; Shares Fall 8%
SunTrust analyst Edward Nash has left the sidelines, downgrading his rating from a Hold to a Sell on Cempra Inc (NASDAQ:CEMP).
Nash notes he expects the Food and Drug Administration (the FDA) to provide complete response letters for the company’s solithromycin treatment due to manufacturing issues. Cempra produces antibodies to meet critical medical needs.
The market is cautious, which is in line with the Hold analyst consensus rating on TipRanks, after Cempra’s co-founder, President, and CEO Dr. Prabha Fernandes made a sudden exit earlier this month. Subsequently, board member David Zaccardelli is set to take over as acting CEO and Chief Commercial Officer David Moore has been promoted to the role of President. Dr. Fernandes will continue to serve as a scientific consultant to the company.
Edward Nash has a 48% success rate on TipRanks with an average return of 2.4%. This gives him a ranking of 1,784 out of 4,288 analysts monitored by TipRanks’ financial accountability engine.