Spruce Biosciences price target lowered to $3 from $8 at JMP Securities

JMP Securities lowered the firm’s price target on Spruce Biosciences to $3 from $8 and keeps an Outperform rating on the shares. While the firm wanted to see a clean safety profile and tildacerfont meaningfully reduce A4 levels in the CAHmelia-203 trial, which would have been viewed as derisking for the more important CAHmelia-204 trial readout in Q3, there was clean safety but a complete miss on A4, which Spruce attributed to an interplay of a hard-to-treat population and low compliance, the analyst tells investors in a research note. The firm thinks Spruce will need another adult trial for approval with management planning for an end-of-Phase 2 meeting in 1Q25.