Baird analyst Michael Ulz cut his price target on NewLink Genetics (NASDAQ: NLNK) to $23.00 (from $27.00) after Algenpantucel-L (cancer vaccine) failed to demonstrate a benefit in resected pancreatic cancer, with the control arm performing better than expected, as we they had cautioned. However, the firm maintained an Outperform rating.

"While the company is evaluating the future of the HyperAcute program, we are removing modest prior algenpantucel-L revenue from our model," Ulz commented. "We expect shares to open down, but maintain our Outperform rating based on our bullish view of the IDO program, and in particular GDC-0919, with greater visibility expected in 4Q16."

On the IDO platform, he added: "We remain bullish on the IDO program and in particular GDC-0919, partnered with Roche's (uncovered: ROG.VX) Genentech. We expect greater visibility in 4Q16 with data from a Phase 1b study of GDC-0919 in combination with atezolizumab (anti-PD-L1) in multiple solid tumors at ESMO (October 7-11, Denmark)."

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Shares of NewLink Genetics closed at $16.50 yesterday.