4D Molecular downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded 4D Molecular (FDMT) to Market Perform from Outperform with a price target of $15, down from $40. 4D-150 durability in diabetic macular edema appears limited, which, combined with theoretical risks of gene therapy, suggests that 4D-150 may be mostly attractive to newly-diagnosed patients, narrowing its total addressable market to about 10%-20% of the total wet age-related macular degeneration, the analyst tells investors in a research note. Although a potential partnership can be an upside driver, the upcoming 4D-150 readouts are more likely to drive downside than upside due to lower injection-free rate with longer follow-up, the analyst adds.