UPDATE: JPMorgan Downgrades Orchard Therapeutics (ORTX) to Underweight on Lack of Meaningful Short-term Catalysts and Negative Sentiment

JPMorgan analyst Anupam Rama downgraded Orchard Therapeutics (NASDAQ: ORTX) from Neutral to Underweight.

The analyst comments "We rate ORTX shares Underweight. In our view, Orchard’s programs leveraging their proprietary ex vivo autologous gene therapy approach have long-term upside potential across a range of high unmet need indications. With the stock trading roughly at cash, there is close to no value at current levels being ascribed to Orchard’s pipeline of assets. That said, however, we believe it will take near- to mid-term catalysts to increase investor confidence and lead to greater value being ascribed to the company’s platform, which we don’t see over the next ~12 months. In spite of the pullback, without any value-inflecting/de-risking catalysts on the horizon, we think shares could continue to be a relative underperformer compared to the broader biotech markets and see other more interesting opportunities elsewhere in our coverage. We could look to get more constructive on greater execution with the late-stage pipeline that clears the path to clinic in key geographies for Metachromatic Leukodystrophy (MLD)/Wiskott-Aldrich syndrome (WAS) and/or nearing clinical data that may be value-inflecting."

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

Shares of Orchard Therapeutics closed at $1.77 yesterday.

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