Piper Jaffray Downgrades Neothetics Inc. (NEOT) to Neutral

Piper Jaffray downgraded Neothetics Inc. (NASDAQ: NEOT) from Overweight to Neutral with a price target of $3.00 (from $20.00) after the company announced that lead product candidate LIPO-202 failed to meet its primary and secondary endpoints in pivotal studies evaluating the product for the localized reduction of abdominal fat in non-obese individuals.

Analyst David Amsellem commented, "We had believed that the favorable efficacy signal seen for the 0.4 mcg dose in a previous Phase IIb study pointed to a strong likelihood of success in Phase III. We were wrong. Given the absence of any trends in favor of LIPO-202, we would not expect to see NEOT go back to the drawing board to explore different clinical endpoints or to seek to explore the development of the product in other aesthetic settings. We are lowering our PT to $3 from $20; our new PT is based on our estimate of NEOT's cash per share by year-end."

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

Shares of Neothetics Inc. closed at $7.13 yesterday.

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