Regenxbio clinical hold does not change thesis, says Clear Street

Clear Street analyst Bill Maughan reiterates a Buy rating on Regenxbio (RGNX) with a $50 price target after the FDA placed a clinical hold on two of the company’s investigational gene therapies: RGX-111 and RGX-12, following the identification of a tumor in a five year old patient. The firm believes the event has a limited impact on the stock’s thesis. It is not known if the RGX-111 integration was causative of the neoplasm and the patient was asymptomatic and doing well on the therapy, the analyst tells investors in a research note. Regenxbio in premarket trading is down 31% to $9.20.