Morgan Stanley on Rubius (RUBY) New Strategy and Restructuring: 'removes potential for near-term clinical catalyst'

Morgan Stanley analyst Jeffrey Hung reiterated an Equalweight rating and $1.50 price target on Rubius (NASDAQ: RUBY).

The analyst comments "Our Take: Update removes potential for near-term clinical catalysts. We acknowledge the potential advantages of the next-gen platform and understand streamlining the business to extend the cash runway. However, this is not the first pipeline pivot for the company,and the reset will further extend the time needed for clinical data to be generated with new candidates. As a result, with a lack of near-term clinical catalysts (compared to last month's confirmation of 2 upcoming clinical readouts for RTX-240 and RTX-224), we expect shares to face meaningful pressure even as some investors wait for the upcoming preclinical data to confirm potential advantages of the cell conjugation platform. "

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

Shares of Rubius closed at $1.07 yesterday.

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