Morphic sinks after EMERALD-1 abstract, says Stifel

Stifel attributes the selloff today in shares of Morphic to the recently-posted EMERALD-1 abstract from the United European Gastroenterology meeting. One of the incremental data points included is the rate of endoscopic improvement 25.7%, which is the same rate as observed for clinical remission and appears on the lower end of recent studies, the analyst tells investors in a research note. Whether this is concerning or an “artifact of the small trial size” remains to be determined, says the firm. Stifel notes it Hold thesis on the stock is based on the view that the 35 patient open label data set may not be sufficient for acquisition interest prior to Phase 2b topline data expected in the first half of 2025. Morphic shares in midday trading is down 31% to $35.22.