Relmada Therapeutics downgraded to Neutral from Outperform at Mizuho

Mizuho analyst Uy Ear downgraded Relmada Therapeutics (RLMD) to Neutral from Outperform with a price target of $1, down from $23. The Data Monitoring Committee finding of futility is “truly disappointing and likely means the end of the line” for REL-1017 in major depressive disorder, says the analyst, who removes the firm’s sales forecast, with a previous peak sales assumption of $1.7B, and corresponding spending assumptions related to REL-1017 from the firm’s model. Relmada has a second asset, REL-P11, which is low-dose, modified-release psilocybin formulation to treat metabolic diseases, but REL-1017 was “clearly the more important asset,” the analyst added.