Biomea slips after JP Morgan downgrades to 'neutral,' cuts PT

Biomea Fusion

02/04/2024 10:44

** Shares of drug developer Biomea Fusion  BMEA.O  fall
4.71% premarket to $14.58
    ** J.P.Morgan downgrades stock to "neutral" from
"overweight"; cuts price target to $14 from $51
    ** Says preliminary data on co's experimental therapy
BMF-219 to treat type-1 diabetes "too early and too limited" to
draw reliable conclusions
    ** Co on Monday reported initial data from first two
patients dosed with BMF-219 which showed early signs of clinical
activity with improved measures
    ** BMEA also reported Q4 2023 loss of $0.98/shr, versus loss
of $0.86 in the prior year
    ** JPM expects Street scepticism over BMF-219's mechanism of
action, durability, and addressable patient populations to
continue
    ** In addition, balance sheet runway inside of 12 months
will keep shares rangebound over near to midterm - JPM
    ** Of eight analysts tracking stock including JPM, seven
rate "buy" or higher and one "hold"; their median PT is $50 -
LSEG data
    ** BMEA up ~5% YTD

 (Reporting by Roshan Abraham)
 ((Roshan.Abraham@thomsonreuters.com))