Nomura Securities Downgrades Macrocure Ltd (MCUR) to Neutral

Nomura Securities downgraded Macrocure Ltd (NASDAQ: MCUR) from Buy to Neutral with a price target of $6.00 (from $20.00).

Analyst M. Ian Somaiya commented, "We are downgrading MCUR to Neutral and cutting our TP to $6 from $20 following the announcement that the Data Safety Monitoring Board (DSMB) has concluded the CureXcell Phase III trial in venous leg ulcers (VLU) is not expected to meet its primary endpoint. The futility analysis was pre-specified and was conducted once 60% of patients had completed the trial. Thus, we are removing our VLU estimates from our model. While we continue to look for Phase III data from the diabetic foot ulcer (DFU) trial in October, we are now applying a 75% probability of success factor to our ~$550mn peak sales estimate. Additionally, we believe our 2H17 launch assumption could be at risk if FDA requires a third Phase III trial (potentially in chronic wounds below the knee) given results in VLU. We would look to get more constructive on MCUR following release of positive DFU data and improved visibility into CureXcell’s clinical and regulatory pathway."

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

Shares of Macrocure Ltd closed at $12.05 yesterday.

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