In a report released today, Michael Ulz from Morgan Stanley downgraded AlloVir (ALVR – Research Report) to a Hold, with a price target of $1.00.
Geoff Meacham has given his Hold rating due to a combination of factors that affect the future prospects of AlloVir. The company’s decision to halt all three Phase 3 clinical trials of posoleucel, their multi-virus T cell therapy, plays a significant role in this evaluation. The independent Data Safety Monitoring Board’s recommendation to discontinue these studies was based on futility, suggesting that the trials were unlikely to meet their primary endpoint, even though no safety concerns were reported. This development signifies a considerable setback for AlloVir, as it diminishes the potential for future revenue from posoleucel, which was a major component of the company’s pipeline.
Furthermore, the management’s shift in focus towards exploring strategic alternatives and capital preservation indicates a period of uncertainty for the company. In response to this strategic pivot and the discontinuation of the posoleucel program, the price target has been significantly lowered from $20 to $1. This reduction reflects the anticipated cash position by the end of 2024 and the current market reaction, with the stock price experiencing a substantial intraday decline. These factors collectively contribute to the Hold rating, encapsulating the challenges and uncertainties AlloVir faces going forward.
In another report released today, Piper Sandler also downgraded the stock to a Hold with a $1.50 price target.
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Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ALVR in relation to earlier this year.
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AlloVir (ALVR) Company Description:
AlloVir Inc is a late clinical-stage cell therapy company. It is developing allogeneic T cell therapies to treat and prevent devastating viral diseases. The firm’s pipeline includes ALVR106, ALVR109, ALVR108, and others. The company’s product candidate, Viralym-M, is a multi-VST therapy targeting five viruses namely BK virus, cytomegalovirus, adenovirus, Epstein-Barr virus, and human herpesvirus 6.
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