Zentalis price target lowered to $20 from $40 at H.C. Wainwright

H.C. Wainwright lowered the firm’s price target on Zentalis to $20 from $40 and keeps a Buy rating on the shares after the FDA placed three clinical studies of azenosertib on partial hold following two drug-related deaths in the DENALI monotherapy study for platinum-resistant ovarian cancer, which occurred in the first half of 2024. H.C. Wainwright finds the timing of the hold “curious,” considering azenosertib has been in clinical development since 2019 and has a well-documented safety profile, but tells investors that the FDA hold is a major blow to the stock. The firm lowered its overall PoS for azenosertib across the board for multiple indications to 15% from 25%.