Bank of America Securities analyst Tazeen Ahmad reiterated a Sell rating on Fulcrum Therapeutics (FULC – Research Report) yesterday and set a price target of $6.00.
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Tazeen Ahmad’s rating is based on several factors that influence the outlook for Fulcrum Therapeutics. While there is a higher likelihood of success for their lead program, pociredir, in treating sickle cell disease, concerns remain about the long-term safety of the drug. The clinical trial updates are expected to show increased efficacy with higher dosing, but the potential malignancy risk and the need for longer-term data continue to weigh on the stock’s potential upside.
Moreover, the trial’s updated design has narrowed the eligible patient profile, focusing on those who are more severely affected and unresponsive to prior therapies. This adjustment aims to balance the risk and benefit for participants. However, there is a downside risk that these patients may not respond as positively as expected. Additionally, feedback from key opinion leaders highlights safety concerns and the need for more extensive data to support the drug’s long-term effectiveness, which contributes to the Sell rating.