CervoMed price target lowered to $4 from $45 at Roth MKM

Roth MKM lowered the firm’s price target on CervoMed (CRVO) to $4 from $45 and keeps a Buy rating on the shares. The company has reported negative top-line results from the Phase 2b RewinD-LB – dementia with Lewy bodies – study of neflamapimod in pure DLB patients, raising questions about the program’s viability, the analyst tells investors in a research note. A potential reason for failure could be the drug’s inability to achieve the desired plasma concentration – a proxy for efficacy – and CervoMed is pausing Phase 3 preparations, originally scheduled to begin in the second half of FY25, the firm added.