GRPH - Graphite Bio extends losses as Morgan Stanley downgrades on data delay

Graphite Bio (GRPH -14.4%) is trading lower for the third straight session after Morgan Stanley downgraded the gene-editing firm to Equal Weight from Overweight, citing a delay for a key data readout for the company’s sickle cell disease candidate, GPH101. Releasing its Q4 2021 financials on Monday, Graphite Bio (NASDAQ:GRPH) said that the proof-of-concept data from the Phase 1/2 CEDAR clinical trial for GPH101 are expected in 2023. In November, the company anticipated the data by the end of 2022. Even though it is a six-month delay, because of the COVID-19 impact, “it is possible there will not be data until at least mid-2023,” the analyst Jeffrey Hung argues. Hung points to “limited catalysts over the next 9-12 months” and lowers the per share target of Graphite Bio (GRPH) to a Street low of $8 from $19 to imply a premium of ~16% to the last close. Currently, Graphite Bio (GRPH)

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Graphite Bio extends losses as Morgan Stanley downgrades on data delay