Aardvark downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital downgraded Aardvark Therapeutics (AARD) to Sector Perform from Outperform with a price target of $6, down from $18. The company announced a voluntary pause of the ongoing Phase III study of its lead drug ARD-101 for Prader-Willi due to cardiac observations in a separate study of healthy subjects, the analyst tells investors in a research note. The firm says that while clean safety was seen at therapeutic doses, which may still allow a path forward for the drug, timelines will likely be pushed back meaningfully as Aardvark engages with the FDA on next steps. This “adds a layer of uncertainty,” contends RBC.