franckreporter
Biomea Fusion (NASDAQ:BMEA) shares fell on Tuesday as JPMorgan downgraded the biotech to Neutral from Overweight citing its financial issues and newly released data for the company’s lead asset BMF-219.
Analyst Eric Joseph argued that early data from the company’s COVALENT-112 mid-stage study for BMF-219 in type 1 diabetes “are largely uninterpretable” due to the small sample size of only two patients.
Additionally, the baseline histories and on-drug follow-up by dose strength and duration were not comparable, according to the analyst.
Given overall data for BMF-219 in diabetes including readouts from the company’s COVALENT-111 Phase 1/2 trial in type 2 diabetes, “we anticipate ongoing Street skepticism over BMF-219’s MoA, durability, and addressable patient populations,” Joseph added.
The analyst also flagged Biomea’s (BMEA) financial concerns arguing that the company’s latest 10-K indicated going concern issues with a cash runway inside 12 months. JPMorgan lowered its price target on BMEA to $14 from $51 per share.