Third Harmonic Bio, Inc. (THRD – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Michael Ulz from Morgan Stanley downgraded the rating on the stock to a Hold and gave it a $5.00 price target.
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Michael Ulz has given his Hold rating due to a combination of factors surrounding Third Harmonic Bio, Inc.’s strategic evaluation and safety concerns. The company is exploring strategic alternatives and seeking partnership opportunities for its THB335 drug after Phase 1 data indicated safety issues at higher doses. This has led management to consider evaluating the drug at moderate doses for specific disorders, but a strategic partner is necessary for further development.
Furthermore, Third Harmonic Bio is undergoing a significant restructuring, including a 50% workforce reduction and the elimination of all programs not related to THB335. These actions contribute to near-term uncertainty, prompting the downgrade to a Hold rating and a reduction in the price target from $20 to $5. The safety profile of THB335, with dose-dependent tryptase reductions, shows promise, but higher doses pose safety risks, limiting its immediate potential. Overall, the uncertainties surrounding the company’s strategic direction and safety concerns of the drug are key reasons for the Hold rating.
According to TipRanks, Ulz is an analyst with an average return of -1.8% and a 36.26% success rate. Ulz covers the Healthcare sector, focusing on stocks such as Akero Therapeutics, Vir Biotechnology, and Alnylam Pharma.