Design Therapeutics downgraded to Market Perform at SVB Securities

As previously reported, SVB Securities analyst Joseph Schwartz downgraded Design Therapeutics to Market Perform from Outperform with a price target of $6, down from $22, following a mixed data and development update from the Phase 1 MAD study of DT-216 in Friedreich’s ataxia, which is prompting the company to pursue a new formulation of DT-216, pushing the next data catalysts out considerably. While Design did show increased muscle FXN mRNA expression in FA patients after 3 doses of DT-216, muscle FXN protein expression was inconclusive due to high variability in the assay, and muscle DT-216 concentration was lower than expected, the firm notes. Additionally, there were 5 AEs of injection site thrombophlebitis across dose cohorts that the company has attributed to an unnamed excipient in the current formulation, prompting its decision to pursue a new formulation of DT-216 due to the concern of worsening injection site reactions at higher doses and with multiple administrations.