Y-mabs slumps as FDA panel vote against cancer drug drives PT cuts

Y-mAbs Therapeutics

31/10/2022 11:09

** Shares of drug developer Y-mAbs Therapeutics Inc  YMAB.O 
decline ~42% to $5.20 before the bell 
    ** Stock among top pct losers across the three major U.S.
stock indexes during premarket trade 
    ** Late on Friday, YMAB said an advisory committee to the
U.S. Food and Drug Administration unanimously voted against the
use of its cancer drug in children with a form of rare and
deadly cancer called neuroblastoma 
    ** The panel voted 16 to 0 that YMAB did not provide
sufficient evidence that its drug omburtamab improves overall
survival in pediatric patients with neuroblastoma
    ** J.P. Morgan cuts rating on YMAB to "underweight" from
"neutral", citing concerns for company's pipeline in the
mid-term after unfavorable vote 
    ** JPM also cuts PT on stock to $7 from $16, says that
YMAB's revenue from its other cancer drug Danyelza will continue
to be muted in near term as it faces commercialization hurdles 
    ** H.C. Wainwright trims price target on YMAB to $19 from
$63, citing that omburtamab faces an uncertain future as
approval of the drug is now unlikely
    ** At least three other brokerages also cut price target on
YMAB following FDA panel outcome for the its cancer drug 
    ** As of last close, YMAB down ~45% YTD
 (Reporting by Bhanvi Satija in Bengaluru)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))