Jefferies downgrades Relmada Therapeutics after depression drug fails study

Relmada Therapeutics

14/10/2022 12:33

** Shares of antidepressant drug developer Relmada
Therapeutics Inc  RLMD.O  fall 4.4% to $6.2 premarket - on track
for their second straight session of losses 
    ** Jefferies downgrades to 'hold' from 'buy', citing
decreased confidence in co's depression pill, REL-1017, after it
fails to meet main goal in keenly anticipated late-stage trial 
    ** Brokerage also cuts PT to $8 from $75 on low clarity in
co's ability to show significant improvement in depression
symptoms compared to placebo in upcoming late-stage trials
    ** Also views co as a 'show-me' story, eyeing on more
late-stage data from its other 2 depression treatment trials in
2023  
    ** Jefferies says current class of drug do not achieve the
rapid-acting antidepressant effect of REL-1017 and awaits more
clarity from co's discussions with FDA in the coming weeks
    ** Up to Thursday's close, stock was down 71.3% YTD 
 (Reporting by Pratik Jain)
 ((Pratik.Jain@thomsonreuters.com;))