BMO Capital Downgrades Regulus Therapeutics (RGLS) to Market Perform

BMO Capital downgraded Regulus Therapeutics (NASDAQ: RGLS) from Outperform to Market Perform with a price target of $4.00 (from $16.00).

Analyst Matthew Luchini commented, "We are downgrading RGLS shares to Market Perform following the announcement that FDA has placed a clinical hold on lead drug RG-101. We are also lowering our price target to $4 from $16 as we reduce the probability of success for RG-101 based on increased regulatory risk. The clinical hold is based on the emergence of a second serious adverse event (SAE) of jaundice, this time in the U.S. Phase I HCV/ESRD co-infection study. Given our belief that a clean safety profile is necessary to be competitive in HCV, we believe the clinical hold raises potential questions around about the competitiveness of RG-101’s safety profile and increases uncertainty surrounding the drug’s developmental path. We believe visibility into FDA’s specific safety questions (expected in late July) is key to fulling understanding risk around the program."

For an analyst ratings summary and ratings history on Regulus Therapeutics click here. For more ratings news on Regulus Therapeutics click here.

Shares of Regulus Therapeutics closed at $5.01 yesterday.

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