georgeclerk
AN2 Therapeutics (NASDAQ:ANTX) continued to trade lower on Tuesday as Leerink Partners downgraded the company after the company paused enrollments in a Phase 2/3 clinical trial for its lead asset, epetraborole, a decision that led to a sharp selloff in its shares yesterday.
With the company pausing Phase 3 enrollments for epetraborole against Mycobacterium Avium Complex (MAC) Lung Disease in reaction to lower-than-expected efficacy in Part 2 of the trial, Leerink analyst Joseph Schwartz cited concerns about its next readout scheduled for Q2 2024.
He downgraded ANTX to Market Perform from Outperform and cut his price target on the stock to $7 from $23 per share. However, the analyst argues that the announcement throws AN2’s rival Insmed (INSM) in a favorable light.
Amid efficacy concerns on epetraborole, the Bridgewater, New Jersey-based biotech can now maintain its leadership against MAC and other lung-related conditions, Schwartz added. With an Outperform rating, Leerink considers Insmed (INSM) one of its top picks for 2024.