2023-06-26 13:37:01 ET
Jefferies has downgraded Biomea Fusion ( NASDAQ: BMEA ) to hold following the company's presentation of data for its type 2 diabetes drug candidate BMF-219 at a meeting of the American Diabetes Association this past weekend.
The investment bank said the data seemed to "raise more questions" about the drug's mechanism of action and how the drug can be best developed given the increasing number of diabetes treatments on the market.
"It may take a while to see a clear development path and successful commercial application BMF-219," said Jefferies, explaining the downgrade. It also lowered its price target to $28 from $36.
Shares of Biomea were down 17% in afternoon trading Monday.
More on Biomea:
- Biomea Fusion jumps 19% after Phase 2 data for diabetes therapy
- Barclays bullish on Biomea, Replimune, Syndax, Iovance for 2H 2023
- Biomea Fusion overweight at Barclays on covalent drug technology
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Jefferies downgrades Biomea to hold amid new data on diabetes drug