Frequency Therapeutics: JPM double downgrades as hearing loss trial disappoints

Korro Bio

24/03/2021 05:06

** J.P. Morgan double downgrades drug developer  FREQ.O  to
"underweight" from "overweight" after co's hearing loss
treatment disappoints in mid-stage trial 
    ** Slashes PT by 82% to $10
    ** FREQ said on Tuesday that four weekly injections of its
lead candidate, FX-322, to treat patients with
mild-to-moderately severe hearing loss did not show improvements
vs placebo in a mid-stage trial  urn:newsml:reuters.com:*:nL4N2LL3BO
    ** JPM says trial data highlights potential difficulties in
assessing novel products in the hearing loss space in a
randomized controlled fashion
    ** "We would potentially look to get more constructive on
FREQ shares once the path forward becomes clear and/or there are
more definitive signals for FX-322 in a controlled setting,"
says JPM
    ** However, FREQ separately said FX-322 early-stage study
confirms hearing improvement from single injection
    ** Stock marked worst session ever on Tuesday and closed at
$7.99, a record low 
    ** Four brokerages rate the stock "buy" or higher and 1
"sell" or lower; their median PT is $20 - Refinitiv data
    ** FREQ down 77.3% YTD 

 (Reporting by Aniruddha Ghosh in Bengaluru)
 ((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))