PFE - Pardes Biosciences cut at Jefferies on COVID drug failure

2023-04-04 13:10:13 ET

• Jefferies has downgraded Pardes Biosciences ( NASDAQ: PRDS ) to hold from buy after a COVID-19 drug failed in a phase 2 trial.
• The candidate, pomotrelvir, did not meat its main goal and did not show meaningful improvement compared to placebo in the reduction of viral load.
• As a result, Pardes ( PRDS ) has ended development of the candidate and begun a company strategic review.
• Jefferies cut its price target to $1.25 from $10 (~13% downside based on Monday's close).
• Analyst Dennis Ding said that conducting COVID treatment trials is risky given high vaccination rates, relatively low infection rates, and existing, effective treatments, such as Pfizer's ( PFE ) Paxlovid.
• He also projects $5M-10M in cash burn per quarter beginning in 2024.
• Seeking Alpha's Quant Rating has viewed Pardes ( PRDS ) as a hold since Feb. 13.

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