Graphite Bio downgraded to Underperform from Neutral at BofA

BofA downgraded Graphite Bio to Underperform from Neutral with a price target of $2, down from $3, after Graphite’s announcement that the lead nula-cel program in sickle cell disease, or SCD, is being discontinued. The discontinuation is "not altogether surprising" after a serious adverse event occurred in one patient in the CEDAR study, said BofA, which notes that the company will now focus its research efforts on developing non-genotoxic conditioning regimens for SCD. While it acknowledges the need and market for such regiments, BofA said the project is early stage and not sufficiently derisked to assign credit.