Needham & Company Downgrades Achaogen (AKAO) to Hold

Needham & Company downgraded Achaogen (NASDAQ: AKAO) from Buy to Hold.

Analyst Alan Carr commented, "Achaogen provided a 4Q15 update yesterday. Enrollment in plazomicin Phase 3 CRE trial remains slow. Mgmt has concluded that a superiority trial in this indication is not feasible and will instead settle w/ a smaller observational trial. Our initial enthusiasm for plazomicin was based on expectation for launch w/ differentiated label highlighting superiority over CRE standard of care. Given delays and emergence of several competitive antibiotics, we are concerned plazomicin commercial opportunity may be both shifted out and smaller. We now expect plazomicin approval in 2H18 w/ a cUTI label and only supportive CRE in vitro susceptibility and clinical observational data. We believe subsequent launch into a more crowded environment may be challenging. Downgrading to HOLD."

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

Shares of Achaogen closed at $3.62 yesterday.

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