UPDATE: JPMorgan Downgrades ChemoCentryx (CCXI) to Underweight
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JPMorgan analyst Anupam Rama downgraded ChemoCentryx (NASDAQ: CCXI) from Neutral to Underweight with a price target of $17.00 (from $57.00).
The analyst comments "We hold an Underweight rating on CCXI shares. ChemoCentryx is a biotechnology company with a focus on developing oral drugs that target the chemokine system, which is involved in autoimmune and inflammatory diseases as well as cancer. Indeed, post the mixed AdComm for avacopan in ANCA-associated vasculitis, we see now a significant risk for a complete response letter (CRL) by the July 7th PDUFA. Coming out of the AdComm, in our view, the mixed votes by the panelists on all key questions of efficacy, safety, and risk / benefit underscored many of the FDA’s concerns. Yes, while the vote was more 50 / 50-ish, we note that commentary by the panel was skewed to more of a negative tone (with even the need for an additional trial cited multiple times by a number of panelists to better understand / come to a conclusion on the benefit / risk profile of avacopan). Net-net, we felt the AdComm underscored the FDA's key concerns raised in the briefing documents rather than providing clarify / comfort around them. Hence, we see the most likely outcome as a CRL, which potentially leads to significant downside in CCXI shares from current levels (forming the basis of our move to Underweight)."
Shares of ChemoCentryx closed at $27.49 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Related EntitiesJPMorgan, PDUFA, FDA
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