EPZM - Epizyme downgraded at Morgan Stanley citing pandemic impact

Morgan Stanley has downgraded Epizyme ([[EPZM]] -1.8%) to equal-weight from overweight, The firm highlights the pandemic impact on Tazverik market launch with the price target cut to ~$14.00 from $27.00 per share implying ~37.4% upside to the previous close.The methyltransferase inhibitor previously indicated for metastatic or locally advanced epithelioid sarcoma received FDA approval in June 2020 as a treatment for adults with relapsed/refractory follicular lymphoma.The analysts David N Lebowitz and Matthew Harrison argue that the pandemic effects such as virtually driven marketing efforts and physician reluctance to prescribe the medicine without in-person visits as reasons for the tepid market response.Citing a 20 – 30% of decline of new patient starts for Tazverik in follicular lymphoma, the analysts do not expect the launch to normalize until at least late 2021.Tazverik Net Revenues reached $4.5M for 4Q 2020 making up ~~53.8% of company revenue for the quarter compared to ~72.8% for the full year.

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Epizyme downgraded at Morgan Stanley citing pandemic impact