By Sam Boughedda
EQRx Inc (NASDAQ:) shares have been downgraded to Neutral from Buy, with its price target cut to $5 from $8 per share by Goldman Sachs following its third-quarter results released before the open on Thursday.
The company , but its shares plunged over 28% following the release, while it is down a further 1.9% so far Friday.
Goldman Sachs analysts told investors in a research note that EQRx announced several changes relating to its plans for the company’s leading pipeline assets in the U.S. in the wake of regulatory challenges that prompted it to pivot away from its original plan to pursue its approach to commercialization in the U.S.
“Following discussions with the FDA, EQRX concluded it will discontinue development of sugemalimab in Stage IV NSCLC, as clinical trial burdens that the agency requires have led management to conclude that there is no longer a commercially viable path for the drug in this indication in the US,” wrote the analysts. “With aumolertinib (EGFR), development continues but timelines for the FDA filing in 1L EGFRm NSCLC are pushed out to 2027, as results from an interim readout of the ongoing Phase 3b trial comparing aumo monotherapy to aumo plus chemo and vs. Tagrisso (standard of care) will not be sufficient to meet the FDA’s applicability concerns.”
The analysts added that EQRX’s “robust cash position” remains a key positive, providing reassurance and funding to advance additional programs.
“Pushes, pulls, and a disciplined eye to prioritization of OpEx underpin guidance that cash runway now extends to 2028, from 2025 prior,” added the analysts, who said the firm now looks for visibility to improve and “confidence to strengthen in the outcomes and timelines for near-to-intermediate term value drivers.”
Story Credit: investing.com