Needham & Company Downgrades Regulus Therapeutics (RGLS) to Hold

Needham & Company downgraded Regulus Therapeutics (NASDAQ: RGLS) from Buy to Hold.

Analyst Alan Carr commented, "RGLS announced late Friday that FDA has extended RG-101 clinical hold and requested additional long-term clinical data from ongoing trials. These data are not expected until 4Q17. We've removed the program from our model considering extensive development risk. Regardless, opportunity for RGLS to capture value in HCV is fading in our view given growing number of effective once-daily oral options. Though we believe microRNA platform has substantial potential, we are downgrading to HOLD due to absence of near-term material clinical milestones. A key value-creating milestone in our view is top-line results from Phase 2 proof-of-concept trial of RG-012 in Alport Syndrome. This trial is expected to begin mid-2017, with results available in 2018. Data from RG-125 Phase 2 trial in NAFLD (collaborator AstraZeneca) are expected 3Q17."

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 $2.25 yesterday.

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