Morgan Stanley lowers AlloVir to Underweight after discontinuations, job cuts

As previously reported, Morgan Stanley downgraded AlloVir to Underweight from Equal Weight with a price target of 50c, down from $1, after AlloVir recently announced the discontinuation of multiple Phase 3 studies for posoleucel following an “unexpected and disappointing” DSMB review that recommended all three studies be stopped for futility. Given the study discontinuations, the company’s work force reduction of 95% is “not surprising,” but the firm believes the future of the company remains uncertain and expects shares to trade at a discount to cash while it sees greater opportunity elsewhere in its coverage, the analyst tells investors.