Rocket Pharmaceuticals downgraded to Market Perform from Outperform at Leerink

Leerink downgraded Rocket Pharmaceuticals (RCKT) to Market Perform from Outperform with a price target of $8, down from $37, after the company said a Danon disease patient participating in the Phase 2 pivotal trial of RP-A501 experienced an unexpected serious adverse event related to a capillary leak syndrome. Today’s update raises three key concerns that will weigh on shares until they can collectively be resolved – addressing the safety uncertainty, re-establishing investor confidence, and alleviating the balance sheet overhang, the analyst tells investors in a research note. While Rocket is in active dialogue with the FDA, the company could not provide anticipated timelines for future discussions/resolution of clinical hold as of yet, the firm added.