MGTA - Magenta Therapeutics defended at Wedbush despite setback in blood cancer trial

Magenta Therapeutics ([[MGTA]] -6.3%) continues to trade lower after a sharp drop in value in the pre-market on its announcement that the FDA issued a clinical hold letter on its Phase 1/2 trial for MGTA-117 in acute myeloid leukemia ((AML)) and myelodysplastic syndrome ((MDS)).In addition to blood cancers, Magenta expects to develop MGTA-117 as a targeted conditioning agent for patients with genetic diseases before the use of ex vivo gene therapies.However, Wedbush analyst David Nierengarten continues to believe in the antibody-drug conjugate incorporating only a model adjustment for Magenta to reflect the longer timeline to meet the FDA requirement."Going forward, we have made the necessary adjustment to our model, incorporating the added time needed to satisfy the new FDA requirement,” Nierengarten wrote highlighting the potential of therapy to enter clinical trials and avoid the toxicities linked to current conditioning therapies.Late June, Cantor Fitzgerald initiated the coverage of Magenta with an overweight recommendation

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Magenta Therapeutics defended at Wedbush despite setback in blood cancer trial