Y-mAbs cut to Underweight at Morgan Stanley on slowing growth, lack of catalysts

As previously reported, Morgan Stanley analyst Michael Ulz downgraded Y-mAbs Therapeutics to Underweight from Equal Weight with a price target of $4, down from $6. The firm’s prior rating was driven primarily by a cautious view on the Danyelza launch in neuroblastoma, but the recent negative regulatory decision on omburtamab removed a key near-term growth driver and left the company lacking meaningful near-term catalysts, the analyst tells investors. A pivotal study of Danyelza to expand the label into osteosarcoma is not expected to begin until 2024, while the lead GD2-SADA program is not expected to enter clinical testing until later this year, the firm noted.