In a report released today, Naureen Quibria from Capital One Financial downgraded GlycoMimetics (GLYC – Research Report) to a Hold, with a price target of $0.50.
Naureen Quibria’s rating is based on the recent clinical outcomes and future prospects for GlycoMimetics’ flagship drug candidate, uproleselan (upro), in combination with standard-of-care chemotherapy for relapsed/refractory acute myeloid leukemia (r/r AML). The pivotal Phase 3 study did not meet its primary endpoint of overall survival, which significantly impacts the company’s valuation and the drug’s potential for approval. With the stock experiencing a precipitous decline following the announcement, there is considerable uncertainty about the company’s ability to recover value for shareholders in the near term.
Moreover, the company’s decision to put other projects on hold, such as GMI-1687 for sickle cell disease, to conserve resources and re-evaluate the path forward for upro, suggests a narrowing of focus that could limit near-term growth opportunities. However, there remains a glimmer of potential as the company considers a subgroup analysis that might reveal some clinical benefit, drawing a parallel to a similar strategy that led to Lynparza’s approval. Thus, the Hold rating reflects a cautious approach amidst GlycoMimetics’ strategic reassessment and the anticipation of further data that could influence upro’s future.
Quibria covers the Healthcare sector, focusing on stocks such as ADC Therapeutics, Fennec Pharmaceuticals, and GlycoMimetics. According to TipRanks, Quibria has an average return of -20.4% and a 25.00% success rate on recommended stocks.
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GlycoMimetics (GLYC) Company Description:
GlycoMimetics, Inc. operates as a clinical stage biotechnology company, which focuses on the discovery and development of novel glycomimetic drugs to address unmet medical needs resulting from diseases in which carbohydrate biology plays a key role. It develops proprietary glycomimetics that inhibit disease-related functions of carbohydrates. The company was founded by Rachel K. King and John L. Magnani on April 4, 2003 and is headquartered in Rockville, MD.
