Denali Therapeutics price target lowered to $31 from $37 at Wedbush

Wedbush analyst Laura Chico lowered the firm’s price target on Denali Therapeutics (DNLI) to $31 from $37 and keeps an Outperform rating on the shares. Most notable in Denali’s Q2 update, partner Biogen (BIIB) exercised its option for the company’s ATV:Abeta program in Alzheimer’s disease triggering collaboration revenue of $294M. Separately, Denali and partner Takeda (TAK) indicated they will discontinue further DNL919 development, the firm notes. While preliminary Phase 1 data demonstrated target engagement, based on the emerging safety profile the companies anticipated a potentially narrow therapeutic index. With additional backup compounds now advancing, this would not seem to be a TREM2-specific issue. Following the Q2 update, Wedbush is shifting out its DNL151 launch estimates to better tie with trial completion timelines.