AN2 Therapeutics downgraded to Perform from Outperform at Oppenheimer

Oppenheimer downgraded AN2 Therapeutics to Perform from Outperform and removing the firm’s price target after the company announced that it was pausing enrollment of the pivotal Phase 3 trial of epetraborole for treatment-refractory MAC lung disease based on “potentially lower than expected efficacy.” After having spoken to management regarding next steps and timing, the analyst says the company sees a decision coming on the path forward in Q2 after all patients having completed six months on the study drug. Based on today’s news, the firm sees “at best a two- to three-quarter delay to the Phase 3” and steps to the sidelines, anticipating, “at best,” protocol changes related to the study population being evaluated.