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

Biomea Fusion

02/04/2024 14:40

(Updates with share moves)
    ** Shares of drug developer Biomea Fusion  BMEA.O  fell ~9%
to $13.94, hitting their lowest since Jan. 19
    ** J.P.Morgan downgrades stock to "neutral" from
"overweight"; cuts price target from $51 to $14 - lowest in the
Street as per LSEG data
    ** Brokerage 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 mid-term - JPM
    ** Of eight analysts tracking the stock, seven rate it "buy"
or higher and one, JPM, rate it "neutral" - equivalent to
"hold"; their median PT is $50 - LSEG data
    ** BMEA up ~5% YTD

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