Citi cuts Aldeyra target to $8 after ‘shock’ from FDA

Citi analyst Yigal Nochomovitz lowered the firm’s price target on Aldeyra to $8 from $25 and keeps a Buy rating on the shares. The company’s disclosure of the FDA’s negative view on the adequacy of reproxalap efficacy data in dry eye “came as a shock given the pivotal trials were deemed positive and adequate,” the analyst tells investors in a research note. The firm says it is unclear where the FDA is expressing doubts about the sign end points. It dropped the price target to reflect the “high likelihood” of a complete response letter. Citi lowered its probability of success for reproxalap approval to 55% and pushed back the commercialization of reproxalap by two years.