IDRA - Idera Pharma to face 'substantial' financial risk after trial setback: Wedbush

Idera Pharmaceuticals ([[IDRA]] -63.7%) has faced multiple downgrades from Wall Street analysts following the announcement of results of its phase 3 ILLUMINATE-301 trial for tilsotolimod which failed to meet the primary endpoint with statistical significance.The analysts from H.C. Wainwright, JPMorgan, Barclays, and Wedbush Securities have downgraded the stock and Idera has shed nearly two-thirds of its value so far.With the recommendation cut to neutral from outperform, Wedbush Securities analyst Robert Driscoll pegs the stock’s price target at only $1.00 per share down from $8.00 per share earlier to imply ~80.8% downside to the previous close.Despite the management comments over the continuation of the trial towards overall survival data, the analyst removes tilsotolimod in PD-1 refractory melanoma program from the valuation model arguing that the therapy is unlikely to cause a ‘meaningful’ survival benefit in patients.With the price target reflecting Idera’s cash balance at 2020 year-end, Driscoll expects the company to endure

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Idera Pharma to face ‘substantial’ financial risk after trial setback: Wedbush