Eliem Therapeutics downgraded to Neutral from Buy at H.C. Wainwright

H.C. Wainwright analyst Douglas Tsao downgraded Eliem Therapeutics to Neutral from Buy without a price target. The analyst was surprised by yesterday’s announcement indicating Eliem’s decision to pause further development of ETX-155 to conserve financial resources. As the company’s only asset in clinical development, the firm based its investment thesis on ETX-155. ETX-123 could be a promising asset based on preclinical results showing in vivo anticonvulsant activity in a maximal electroshock seizure model, but due to the lack of catalysts in the near future, H.C. moved to the sidelines.