CRTX - Cortexyme downgraded at Jefferies after clinical hold to Alzheimer's trial

Yesterday, Cortexyme ([[CRTX]] +2.9%) recorded its sharpest one-day share price decline after the company announced a partial clinical hold on atuzaginstat (COR388), impacting the open-label extension phase of the ongoing GAIN Trial.Citing that to impact the trial outcome, Jefferies has downgraded the stock to hold from buy with the price target cut to $34.00 from $54.00 implying ~10.7% downside to the previous close.The clinical hold was due to hepatic adverse events that were reversible and without any known long-term adverse effects, Cortexyme said adding that no new participants would be enrolled for the OLE phase and currently enrolled OLE participants would be discontinued.The Phase 2/3 GAIN study evaluated the efficacy, safety, and tolerability of atuzaginstat in patients with mild to moderate Alzheimer’s disease.After discussions with the company, Jefferies analyst Biren Amin noted that all patients who developed liver toxicity had discontinued therapy. The ‘disproportionate higher dropout in the active arm could affect

For further details see:

Cortexyme downgraded at Jefferies after clinical hold to Alzheimer’s trial