enGene Therapeutics hit by analyst downgrades as drug data disappoints

Investing.com -- enGene Therapeutics was downgraded by five Wall Street firms after updated interim data from its pivotal LEGEND study of detalimogene in BCG-unresponsive high-risk non-muscle invasive bladder cancer showed an unexplained decline in efficacy.

The data raised questions about the drug's commercial viability in an increasingly competitive treatment landscape.

The anytime complete response rate degraded to 54% from 63% previously, with the decline driven largely by patients enrolled after October 2025. This period followed what analysts had viewed as constructive protocol amendments.

Raymond James analyst Sean McCutcheon, who cut his rating to Outperform from Strong Buy and slashed his price target to $4 from $27, noted that the CR rate for post-protocol patients dropped from 63% to 39%, adding that "management was not able to explain the reason for the dramatic drop-off in efficacy."

Guggenheim analyst Michael Schmidt, downgrading the stock to Neutral, said the profile "now clearly falls short of contemporary therapies" and noted physician feedback pointing to a minimum bar of approximately 40% 12-month CR to support meaningful commercial utilization.

Oppenheimer's Leland Gershell, also lowering the stock to Perform, said enGene "is now a 'show-me' story for which investor enthusiasm will be limited for the foreseeable future."

Piper Sandler's Allison Bratzel downgraded ENGN to Neutral with a $4 price target, citing both data uncertainty and leadership concerns following an updated employment agreement that creates an exit path for the chief medical officer after June 1.

Citizens analyst Silvan Turkcan noted that enGene trades at a 63% discount to its $313 million cash reserves, describing shares as "fairly valued amongst biotech peers with similar development program uncertainties."

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