9 Meters Biopharma cut to Hold at Truist on cash overhang, lack of catalysts

Truist downgraded 9 Meters Biopharma to Hold from Buy. The analyst states that the company’s lead drug vurolenatide has shown activity in SBS Phase 2 and it has recently received further clarity on pivotal trial design. The firm adds however that 9 Meters Biopharma’s recent equity raise gives runway only into Q3 of this year, making cash overhang a key concern for investors. Truist further warns that the pivotal trial initiation could take longer than initially anticipated while also citing the lack of additional near-term catalysts for the company.