Regulus Therapeutics (RGLS): Cutting PT to $10 - Needham & Company

Needham & Company analyst, Alan Carr, cut his PT to $10 after the FDA put the RG-101 program on Clinical Hold. Regulus announced yesterday that the FDA has put RG-101 Hepatitis C program on clinical hold due to reports of two serious adverse events of jaundice (1 prev reported Feb 2016 and 1 new).

Both events occurred well after RG-101 administration (3wks and 17wks) in patients w/ notable comorbidities and concomitant treatment w/ several other medications. Based on facts available and baseline characteristics, it appears jaundice would not be unexpected in these two patients. The FDA may nevertheless be concerned by new and differentiated RG-101 mechanism of action.

The analyst believes the matter will ultimately be resolved and expects development to resume. No change to Buy rating but reduces target significantly to reflect potential delays. The $10 target (was $25) is based on 25x projected 2021 EPS discounted by 25%.

For an analyst ratings summary and ratings history on Regulus Therapeutics click here. For more ratings news on Regulus Therapeutics click here.

Shares of Regulus Therapeutics closed at $5.01 yesterday.

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