Biomea Fusion cut at Barclays following clinical hold

narvikk Barclays has downgraded Biomea Fusion ( NASDAQ: BMEA ) to equal weight from overweight citing the June 6 announcement that the U.S. FDA placed a full clinical hold on phase 1/2 trials for BMF-219 for type 1 and type 2 diabetes.

The firm also lowered its price target to $5 from $30 (~56% downside based on Thursday's close). Analyst Peter Lawson said the downgrade is being done until there is resolution on the hold, which was caused by potential drug-induced liver toxicity . Despite the setback, he expects initial expansion data from the type 3 trial, COVALENT-111, in the second half of the year as well as phase 2 data in from the open-label portion of the type 1 COVALENT-112 trial by the end of the year as well.

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