BofA double downgraded Lyra Therapeutics to Underperform from Buy with a price target of 35c, down from $10, following the announcement that the ENLIGHTEN-1 Phase 3 trial failed. The company has another Phase 3 study ongoing though he ENLIGHTEN-1 update lowers the probability of study success, the analyst tells investors in a research note. Further, Lyra’s limited cash on hand won’t be sufficient to fully fund ENLIGHTEN-2, making it prudent to discount the stock to current cash per share, contends BofA. It now assigns zero value to Lyra’s clinical stage programs.
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