Reneo Pharmaceuticals just downgraded at BofA, here’s why

BofA downgraded Reneo Pharmaceuticals to Underperform from Buy with a price target of $1.45, down from $23, after the company announced that its pivotal STRIDE study of mavodelpar in adult patients with primary mitochondrial myopathies, or PMM, did not meet its primary efficacy or secondary efficacy endpoint. The news “is a surprise to us, and we suspect many on the Street,” says the analyst, who thought the set-up was “favorable” and Reneo’s phase 2 design was “thoughtful.” Reneo now faces “considerable uncertainty moving forward” and the path is unclear, the analyst tells investors.