Lumos Pharma downgraded to Hold from Buy at JonesResearch

JonesResearch downgraded Lumos Pharma (LUMO) to Hold from Buy with a price target of $4.25, down from $20. The company’s definitive merger with Double Point Ventures to go private a via tender offer at $4.25 per share plus a contingent value right at a $38M is done a “disappointing” valuation, the analyst tells investors in a research note. The firm says the CVR is also disappointing as it would have liked to see payments based on regulatory milestones. While the valuation is disappointing, Lumos Pharma’s cash runway limits better alternatives, contends JonesResearch.