UPDATE: H.C. Wainwright Downgrades Gemini Therapeutics Inc. (GMTX) to Neutral

H.C. Wainwright analyst Matthew Caufield downgraded Gemini Therapeutics Inc. (NASDAQ: GMTX) from Buy to Neutral with a price target of $2.00.

The analyst comments " With the announcements of: (1) the current strategic evaluation of the pipeline; (2) the leadership transition of former Executive Chairman Dr. Georges Gemayel, Ph.D., to the role of interim President and CEO; and (3) corporate restructuring of Gemini’s complement Factor H programs, we had anticipated greater assertion of the prospective platform merits during the company’s year-end update. Without formal updates on either the direction of the company’s lead recombinant complement Factor H protein (CFH) candidate GEM103, nor previously highlighted IND-enabling development of CFH potentiating antibody GEM307, we believe the future of the CFH platform remains uncertain at this stage. As the company continues its ongoing evaluation of strategic options that we specifically note could change the overall business strategy, we remind investors this process coincides with the announced workforce reduction of approximately 80%, anticipated by the end of 2Q22. Based on the lack of additional information provided for GEM103 near-term guidance or development of the pipeline, we have further reduced our POS for lead GEM103 in the treatment of geographic atrophy (GA) dry age-related macular degeneration (dAMD) patients from 10% to 5%, while reducing our estimated near-term operating expenses as strategic platform directions continue to be evaluated. Without tangible perspective regarding the near-term future of the platform, we therefore have downgraded our rating to Neutral and reduced our price target to $2 from $5."

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

Shares of Gemini Therapeutics Inc. closed at $1.49 yesterday.

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