Wedbush downgrades Magenta Therapeutics to Neutral, lowers target to $1

As previously reported, Wedbush analyst David Nierengarten downgraded Magenta Therapeutics to Neutral from Outperform with a price target of $1, down from $3. The firm notes Magenta paused its dose escalation study of MGTA-117 in r/r AML after the latest patient dosed at the 3rd dose level of 0.08 mg/kg died after experiencing respiratory failure and cardiac arrest. The company recently discontinued enrollment of patients in dose cohort 4 following lung-related DLTs reported in 2 out of 3 patients dosed at that level, opting to continue dosing patients in dose cohort 3. Without the ability to reliably dose to a level that provides sufficient activity, Wedbush does not see a clear way forward for the program.