Catabasis Pharmaceuticals Inc (NASDAQ:CATB) shares lost over 70% of their value today after the company reported final results from Part B of its MoveDMD clinical trial in Duchenne muscular dystrophy (DMD), and the trial did not meet its primary endpoint of change from baseline in MRI T2 of lower leg muscles for pooled edasalonexent doses vs. placebo at 12-weeks.
In reaction, Cowen analyst Phil Nadeau downgraded Catabasis shares from Outperform to Market Perform, while slashing the price target to $4.00, which still represents a potential upside of 242% from where the stock is currently trading.
Nadeau commented, “Unfortunately last night’s results are not strong enough to provide us confidence that edasalonexent is reasonably likely to have a path to market and without a placebo arm in the OLE, we think strong signals are unlikely to develop. Catabasis’ other clinical program targeting the sterol-regulatory element-binding protein also failed in its proof-of-concept trial in hypercholesterolemia. With its earlier programs only in preclinical development, there is not good visibility on a clinical program that appears reasonably likely to be successful. Therefore today we are downgrading shares from Outperform to Market Perform, and reducing our price target from $30 to $4 (just above cash per share). We have removed assumptions for edasalonexent sales from our model.”
According to TipRanks, analyst Phil Nadeau has a yearly average return of 1.9% and a 46% success rate. Nadeau is ranked #1610 out of 4373 analysts.
Out of the 5 analysts polled in the past 12 months, 4 rate Catabasis Pharmaceuticals stock a Buy, while 1 rates the stock a Hold. With a return potential of 781%, the stock’s consensus target price stands at $10.40.