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Hold Rating for Septerna, Inc. Amid Lead Program Discontinuation and Pipeline Uncertainty

Hold Rating for Septerna, Inc. Amid Lead Program Discontinuation and Pipeline Uncertainty

In a report released today, Derek Archila from Wells Fargo downgraded Septerna, Inc. (SEPNResearch Report) to a Hold, with a price target of $14.00.

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Derek Archila has given his Hold rating due to a combination of factors impacting Septerna, Inc.’s future prospects. The primary reason for this rating is the discontinuation of Septerna’s lead program, SEP-786, due to unforeseen safety concerns related to increased serum bilirubin levels during trials. This development has led to a lack of near-term catalysts as the company has not yet selected a new lead candidate for their PTH program.
Additionally, the company is now focusing on other compounds for PTH development, but these are still in early stages, with potential clinic entry not expected until late 2025. With SEP-631 and other programs also in preclinical stages, the absence of imminent data releases and the increased discount rate reflect the uncertainties and risks associated with Septerna’s pipeline. Consequently, the Hold rating suggests caution as investors await more definitive progress in the company’s development efforts.

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