MORF - Morphic cut to Neutral at BTIG citing concerns over lead asset
2023-09-25 14:56:13 ET
- Extending a sharp decline from last week, Morphic Holding ( NASDAQ: MORF ) continued to trade lower Monday as BTIG downgraded the biotech, citing questions on the potential of its lead asset, MORF-057, targeted at ulcerative colitis (UC).
- The analyst Julian Harrison doesn't believe that the benefit of MORF-057 being an oral therapy for UC can offset the risk that it will be comparable or trail in efficacy to Takeda's ( TAK ) UC therapy, Entyvio (vedolizumab).
- "Without a clear efficacy advantage vs. Entyvio established to date, MORF-057 has a good chance of headwinds continuing to materialize," Harrison wrote, downgrading Morphic ( MORF ) to Neutral from Buy.
- The analyst added that without a clear efficacy benefit, the price will be a key driving factor for uptake, and vedolizumab biosimilars expected within the next decade can complicate the issue.
- Last week, Morphic ( MORF ) shares sold off in reaction to an abstract on MORF-057 posted ahead of a presentation at next month's United European Gastroenterology ((UEG)) Week 2023.
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Morphic cut to Neutral at BTIG citing concerns over lead asset