BMO downgrades 4D Molecular Therapeutics to 'market perform' on durability concerns

4D Molecular Therapeutics

13/01/2025 19:11

** Shares of drug developer 4D Molecular Therapeutics  FDMT.O  fall 13.2% to $4.79
    ** Brokerage BMO Capital downgrades rating to "market perform" from "outperform;" cuts PT to
$15 from $40
    ** New PT represents a 171.4% upside to the stock's last close
    ** FDMT is testing its gene therapy, 4D-150, for the treatment of diabetic macular edema
(DME), a condition where fluid builds up in the central part of the retina due to damaged blood
vessels
    ** Brokerage says "4D-150 durability in DME appears limited" with only 56% of patients being
injection-free at 32 weeks
    ** Brokerage believes "upcoming 4D-150 readouts are more likely to drive downside than
upside" due to lower injection-free rates and safety risks with longer follow-up
    ** Brokerage notes wAMD/DME competitive landscape is increasingly crowded, which may
pressure the FDMT's thesis
    ** 8 of 11 brokerages rate the stock "buy" or higher, 2 "hold" and 1 "sell;" their median PT
is $39 — LSEG
    ** FDMT fell 73.6% in 2024

 (Reporting by Kamal Choudhury in Bengaluru)
 ((Kamal.Choudhury@thomsonreuters.com))