RBC cuts Design Therapeutics to Sector Perform, sees DT-216 data fall short

RBC Capital downgraded Design Therapeutics to Sector Perform from Outperform with a price target of $7, down from $23, after the company reported Q2 results and the latest data cut from their MAD study of lead program in Friedreich’s ataxia, DT-216. While the firm sees signs of activity from DT-216 that confirms that the geneTAC platform has potential to modulate gene expression in humans, DT-216’s 30% mRNA changes falls short of the 50% bar that investors were looking for, the analyst tells investors in a research note. RBC adds that although it continues to see potential with revised formulations of DT-216 that can improve upon the therapeutic window, it is moving to sidelines with limited near-term catalysts as development timelines are pushed out.