Reneo Pharmaceuticals just downgraded at Jefferies, here’s why

Jefferies downgraded Reneo Pharmaceuticals to Hold from Buy with a price target of $1.80, down from $17. The company’s’ sole asset mavodelpar failed to show clinical benefits distinguishable from placebo in a rare mitochondrial disease, resulting in program suspension and a 70% workforce reduction, the analyst tells investors in a research note. The firm says Reneo will provide details on its next step in January.