In a report released today, Marc Frahm from TD Cowen downgraded Inozyme Pharma (INZY – Research Report) to a Hold, with a price target of $4.00.
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Marc Frahm has given his Hold rating due to a combination of factors surrounding Inozyme Pharma’s recent acquisition agreement with Biomarin. The agreed acquisition price of $4 per share represents a significant premium over the previous closing price and is above the net present value estimated by the analyst. This acquisition is seen as a favorable outcome for shareholders given Inozyme’s pressing capital needs and the challenging financing environment for pre-commercial biotech companies.
Furthermore, the acquisition by Biomarin is considered strategically beneficial, as Inozyme’s INZ-701 aligns well with Biomarin’s expertise in enzyme replacement therapies and related fields. While the asset could potentially interest other companies, it is believed that the acquisition process was thorough, and no competing bids are expected. The transaction is anticipated to close on schedule, with minimal regulatory hurdles, leading to the Hold rating and a price target adjustment to match the acquisition offer.
In another report released today, Jefferies also downgraded the stock to a Hold with a $4.00 price target.