Piper cuts AlloVir to Neutral after posoleucel development discontinued

As previously reported, Piper Sandler analyst Christopher Raymond downgraded AlloVir to Neutral from Overweight with a price target of $1.50, down from $27. The firm is stepping to the sidelines after the company’s “shocking decision to discontinue development of posoleucel in all indications.” The analyst was surprised by the the timing, and even more surprising by the outcome, “given all the data produced with this therapy to date.” With AlloVir’s management discussing its intention to shut down development of this program, preserve cash, and pursue strategic alternatives, Piper sees no other option than to downgrade the stock.