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Hold Rating Issued for Rocket Pharmaceuticals Amid Uncertainty Following Clinical Hold on RP-A501 Trial

Hold Rating Issued for Rocket Pharmaceuticals Amid Uncertainty Following Clinical Hold on RP-A501 Trial

Rocket Pharmaceuticals (RCKTResearch Report), the Healthcare sector company, was revisited by a Wall Street analyst on May 23. Analyst Michael Ulz from Morgan Stanley downgraded the rating on the stock to a Hold and gave it a $7.00 price target.

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Michael Ulz has given his Hold rating due to a combination of factors surrounding the recent developments with Rocket Pharmaceuticals. The pivotal Phase 2 trial of RP-A501 for Danon disease has been placed on clinical hold by the FDA following a serious adverse event, which included complications from capillary leak syndrome. This incident led to the unfortunate death of a patient, causing significant uncertainty about the trial’s future.
Rocket Pharmaceuticals is conducting a thorough investigation to identify the root cause, which may be linked to the use of a C3 inhibitor in the immune suppression regimen. While the company collaborates with the FDA and the Independent Data Safety Monitoring Committee to resolve these issues, the timeline for the trial remains uncertain. As a result, Michael Ulz has downgraded the stock to a Hold rating, reflecting the need for more clarity before making further investment recommendations.

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