Pardes downgraded to Market Perform from Outperform at SVB Securities

SVB Securities analyst Roanna Ruiz downgraded Pardes Biosciences to Market Perform from Outperform with a price target of $2, down from $9. The analyst cites the "disappointing" Phase 2 topline results for pomotrelvir in the treatment of standard-risk outpatient COVID-19, which led to the company’s decision to suspend clinical development and consider strategic alternatives for the business, for the downgrade. While Pardes’ protease inhibitor antiviral drug discovery platform could still have residual value, the company has no other products in clinical development and pomotrelvir’s recent Phase 2 setback "for this essentially one-product story creates an overhang on the stock," the analyst tells investors in a research note.