iKena Oncology downgraded to Neutral from Outperform at Wedbush

Wedbush analyst David Nierengarten downgraded iKena Oncology to Neutral from Outperform with a price target of $2, down from $8. The analyst cites the discontinuation of lead program IK-930, the company’s TEAD1 selective inhibitor for the treatment of hippo mutated solid tumors, for the downgrade. While not explicitly stated, the discontinuation is due to challenges in developing a very targeted agent in less common tumor types, and the expenses associated with combination studies, the analyst tells investors in a research note. The firm is moving to the sidelines until management discloses more data and development plans for IK-595 given the competition in the space.