YMAB - Y-mAbs downgraded to neutral at Wedbush following omburtamab panel vote
- Wedbush has downgraded Y-mAbs Therapeutics ( NASDAQ: YMAB ) to neutral following a US FDA panel's unanimously decision Friday to reject omburtamab for pediatric neuroblastoma.
- The firm cut its price target to $6 from $21 (~33% downside based on Friday's close).
- Analyst David Nierengarten said that it is now highly unlikely the FDA will approve the candidate by the action date of Nov. 30. He has also removed omburtamab from his valuation.
- "Without approval...we believe the company will have to finance in the near-term on less favorable terms," Nierengarten wrote. "With growth questions around naxitamab [in phase 2 for neuroblastoma] and lacking other catalysts for shares, we are moving to the sidelines."
- Y-mAbs ( YMAB ) is down 51% in Monday morning trading.
- Despite the latest setback, read why Seeking Alpha contributor Jonathan Faison sees Y-mAbs ( YMAB ) as a hold.
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Y-mAbs downgraded to neutral at Wedbush following omburtamab panel vote