Goldman downgrades Rocket to Sell on ‘surprising and concerning’ update

Goldman Sachs analyst Richard Law downgraded Rocket Pharmaceuticals (RCKT) to Sell from Neutral with a price target of $2, down from $13, after the company announced that the FDA placed a clinical hold on its pivotal Phase 2 Danon disease trial. A patient treated in early May experienced capillary leak syndrome that emerged one week after RP-A501 dosing and subsequently developed an acute systemic infection and passed away after the hold was placed, the analyst tells investors in a research note. Goldman finds Rocket’s Danon disease updates “surprising and concerning” since the protocol amendment and complement activation were not disclosed earlier despite affecting the Ph.se 2 dosing timeline. The firm sees “much doubt” on RP-A501’s commercial potential.