Cargo Therapeutics downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler analyst Biren Amin downgraded Cargo Therapeutics (CRGX) to Neutral from Overweight with a price target of $4, down from $34. The Phase 2 study of firi-cel, FIRCE-1, has been discontinued following an inadequate risk-benefit with suboptimal durable complete responses and reports of immune effector cell-associated hemophagocytic lymphohistiocytosis-like syndrome, the analyst tells investors in a research note. The firm says the news is a surprise as the Phase 1 study by Stanford did not report any incidences of grade 3-plus immune effector cell-associated hemophagocytic lymphohistiocytosis-like syndrome at the FIRCE-1 dose. It downgraded the shares based on the discontinuation.