Mizuho downgrades Adaptimmune to Neutral on solvency concerns

Mizuho downgraded Adaptimmune (ADAP) to Neutral from Outperform with a price target of 50c, down from $1.50. The firm says the company’s solvency and future sustainability are its main concerns. With management trying its best to balance the need to maximize the Tecelra launch while keeping spending low enough to keep the company financially afloat, uncertainty on the outcome of the bank-assisted strategic review, and a lack of catalysts, Adaptimmune’s outlook “simply seems too challenging,” the analyst tells investors in a research note.