Morgan Stanley downgrades Third Harmonic after ‘disappointing’ discontinuation

After Third Harmonic Bio announced that the company has decided to discontinue the ongoing Phase 1b study of its investigational drug candidate THB001 after observing asymptomatic liver transaminitis in two trial subjects, Morgan Stanley analyst Michael Ulz downgraded the shares to Equal Weight from Overweight with a price target of $5, down from $34. Calling the update "disappointing," Ulz notes that Third Harmonic plans to nominate a next generation candidate in 2023 and he sees "uncertainty" given that clarity on the go-forward strategy is not expected until early 2023.