GMTX - Gemini extends losses as strategic review prompts Jefferies downgrade

The clinical-stage biotech, Gemini Therapeutics (GMTX -4.8%) is trading lower for the fourth straight session on Tuesday as the investors react to the company’s recent announcement on leadership and corporate changes. Issuing a statement on Monday, Gemini (NASDAQ:GMTX) said its current Executive Chair would be appointed as its interim President and Chief Executive Officer to replace outgoing CEO Jason Meyenburg. In addition, the company announced plans to reduce 80% of its workforce by the end of Q2 2022. A process to evaluate strategic alternatives has also begun. Following the development, Jefferies analysts led by Chris Howerton have downgraded Gemini (GMTX) to Hold from Buy, citing changes to the firm's model. The team has lowered the price target to $1.50 from $23 assuming, among others, a zero probability of success for the company’s GEM103 program in geographic atrophy (GA) and age-related macular degeneration (AMD). In January, Gemini (GMTX) announced plans to

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Gemini extends losses as strategic review prompts Jefferies downgrade