Morgan Stanley on Bicycle Therapeutics (BCYC): program deprioritization 'disappointing,' but 'right call'

Morgan Stanley analyst Maxwell Skor reiterated an Equalweight rating and $13.00 price target on Bicycle Therapeutics (NASDAQ: BCYC)

The analyst commented, "Zelenectide mUC program deprioritized. With 4Q25 earnings, mgt. announced initial dose selection data from the Ph2/3 Duravelo-2 pivotal trial evaluating zelenectide + pembro in mUC and plans to convert the study to a randomized Ph2 study and deprioritize the program for internal development (see press release HERE). While the company evaluates preliminary regulatory feedback from the EMA, FDA, and MHRA, the company plans to convert the study to a randomized Ph2 study. Once randomized Ph2 data are available, the company will evaluate the path forward for zelenectide. We see potential for the company to try to sell the asset. While disappointing, deprioritizing the zelenectide mUC program is, in our view, the right strategic call amid a highly competitive Padcev market. We see shares up 5%+ as attention shifts to more differentiated pipeline opportunities."

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

Shares of Bicycle Therapeutics closed at $5.05 yesterday.

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