Jefferies downgrades Biomea Fusion, says data ‘seem to raise more questions’

As previously reported, Jefferies downgraded Biomea Fusion to Hold from Buy with a price target of $28, down from $36, largely on an increased discount rate. Following the American Diabetes Association update on early data, the firm argues that additional data “seem to raise more questions” on how BMF-219 works in T2D and how to best develop it in the presence of an increasing number of effective therapies. Given the firm’s view that it may take a while to see a clear development path and successful commercial application of BMF-219, it is resetting its target, largely on an increased discount rate of 14%, up from 13% previously, the analyst tells investors.