Replimune downgraded to Market Perform from Outperform at Leerink

Leerink analyst Jonathan Chang downgraded Replimune (REPL) to Market Perform from Outperform with a price target of $2, down from $11. The FDA has issued a Complete Response Letter regarding the Biologics License Application resubmission for RP1 plus nivolumab in anti-PD-1-failed melanoma. The firm caught up with Replimune’s management, who were deeply disappointed by the FDA’s decision, and pointed out inconsistencies in regulatory feedback. Overall, Leerink views the CRL as a negative for its thesis and says it is removing the RP1 melanoma opportunity from its valuation.