By Sam Boughedda
Investing.com — IGM Biosciences Inc (NASDAQ:IGMS) shares tumbled 40% Monday after the release of data from a phase 1 trial of a drug for patients with advanced B cell malignancies.
Overall, out of the 38 patients evaluable for efficacy, 11 patients showed a response, eight of which were complete responses.
The news saw RBC Capital downgrade the stock, while analysts at Stifel and Wedbush lowered price targets.
RBC's Brian Abrahams told investors that IGM's lead bispecific antibody, IGM-2323, remains clearly active in NHL but has less robust activity than previous cuts. The analyst added that while more data is needed, its future opportunities will narrow if the drug has to compete in the crowded space primarily on its safety profile. Abrahams set a $51 price target on the stock, down from $90.
Stifel lowered their price target to $65 from $98, keeping a buy rating on the stock.
Wedbush's Robert Driscoll lowered the IGM price target to $67 from $82, keeping an outperform rating. Driscoll explained that while clinical activity remains highly promising, IGM-2323 appears to show weaker activity in higher dose groups.