PTCT - PTC Therapeutics stock slides after Citi downgrades to Sell
2023-10-27 09:08:01 ET
PTC Therapeutics ( NASDAQ: PTCT ) plunged ~22% premarket on Friday after the Citi downgraded recommendation on its stock to Sell/High Risk.
SA Quant system rates the stock as Hold
The downgrade follows the company's third quarter earnings and pipeline update that failed to meet analysts expectations. The company widened its net losses from $109.3M in the prior year quarter to $133M. Total revenues were $196.6M, down 9.5% from $217.1M for the third quarter of 2022.
In downgrading PTC, Citi said that it is modelling more conservative probabilities of success for the drugmaker's various pipeline programs given the substantially increased uncertainty across all the programs.
The brokerage highlighted the existing overhang regarding re-examination of Translarna's negative CHMP opinion and new regulatory and development headwinds, such as requests for additional trials and program timeline delays, impacting sepiapterin, vatiquinone, and Upstaza.
Citi also added that the new royalty agreement with Royalty Pharma improves PTC's near-term financial position, but the upfront cash comes at the expense of future Evrysdi royalties, which it previously viewed as one of the company's key growth drivers.
More on PTC Therapeutics
- PTC Therapeutics: Struggling Still But Potential Remains
- PTC Therapeutics, Inc. (PTCT) Q2 2023 Earnings Call Transcript
- PTC Therapeutics GAAP EPS of -$1.76 misses by $0.70, revenue of $196.6M misses by $15.07M
- PTC Therapeutics Q3 2023 Earnings Preview
- Seeking Alpha’s Quant Rating on PTC Therapeutics
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PTC Therapeutics stock slides after Citi downgrades to Sell