Cerevel Therapeutics downgraded to Neutral from Buy at BofA

BofA analyst Tazeen Ahmad downgraded Cerevel Therapeutics to Neutral from Buy with a price target of $31, down from $36, after the company announced that the readouts of the phase 2 EMPOWER trials evaluating emraclidine in schizophrenia are now expected in the second half of 2024, versus prior guidance of the the first half. The company cited slower-than-expected enrollment in the U.S. and delays in the activation of certain clinical sites outside the U.S., notes the analyst, who also points out Cerevel pushed out timelines for studies in other indications earlier this year for the same reason. While the firm remains encouraged by Cerevel’s differentiated selective receptor targeting platform in several neuropsychiatric indications, it looks for color on next steps to overcome operational challenges with their clinical trials and awaits more clarity on the timelines for the multiple readouts expected in 2024.