Biomea Fusion price target lowered to $50 from $60 at Oppenheimer

Oppenheimer analyst Matthew Biegler lowered the firm’s price target on Biomea Fusion (BMEA) to $50 from $60 and keeps an Outperform rating on the shares. Data from the dose-expansion portion of COVALENT-111 showed icovamenib had an average HbA1C reduction of 0.36%, which was a bit lower than the consensus bar of 0.5% and is likely driving the stock reaction today, the analyst tells investors in a research note. The firm says its takeaway “is more nuanced.” It believes icovamenib is an active drug, but notes that as COVALENT-111 proved, it works better in patients still sensitive to insulin. This makes sense given the drug’s mechanism of action and safety was actually much better than most had predicted, adds Oppenheimer. It thinks the combined safety and efficacy offer a route forward for pivotal development.