JonesTrading analyst Catherine Novack has maintained their neutral stance on KRRO stock, giving a Hold rating yesterday.
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Catherine Novack’s rating is based on several factors impacting Korro Bio’s current and future prospects. The company’s recent announcement revealed that their KRRO-110 treatment did not achieve the desired functional AAT levels in AATD patients, leading to a decision to halt further clinical development of this candidate. This setback, coupled with the absence of immediate catalysts and the failure to establish proof-of-concept for their RNA editing platform, has contributed to the Hold rating.
Despite these challenges, Korro Bio is redirecting its focus towards a new delivery method, GalNAc, with plans to nominate a development candidate by the first half of 2026. Additionally, they are preparing to initiate a Phase 1 trial for another RNA editing candidate, KRRO-121, in the second half of 2026. The company’s financial position, with a cash reserve of $102.5 million as of the third quarter of 2025 and a workforce reduction extending their financial runway into the second half of 2027, provides some stability. However, the lack of near-term developments and the uncertainty surrounding their new strategic direction justify the Hold recommendation.