Rapt Therapeutics downgraded to Market Perform from Outperform at Leerink

Leerink downgraded Rapt Therapeutics to Market Perform from Outperform with a price target of $10, down from $42, citing greater clinical and regulatory risk and a lower peak sales forecasts for RPT193 following the “unexpected” FDA clinical hold disclosed yesterday related to a severe adverse event of acute liver failure requiring liver transplant in the ongoing Phase 2b atopic dermatitis study. Many important details were not available to be disclosed as the investigation continues and the firm sees several risks and uncertainties that move it to the sidelines, the analyst tells investors.