Aardvark Therapeutics downgraded to Underperform from Buy at BofA

BofA analyst Tazeen Ahmad downgraded Aardvark Therapeutics (AARD) to Underperform from Buy with a price target of $4, down from $18, following the FDA’s issuance of a clinical hold on lead program ARD-101. While Aardvark management expressed confidence in a potential resolution by year-end, the firm thinks the lack of clarity on timing and next steps puts future clinical development at risk, especially with recent leadership changes within the FDA, the analyst tells investors. The firm also highlights that the competitive landscape continues to evolve with the progressing launch of Soleno’s Vykat XR, acquired by Neurocrine (NBIX), and upcoming data from Rhythm Pharmaceuticals’ (RYTM) setmelanotide later this quarter.