Replimune upgraded to Overweight at Cantor after Prasad leaves FDA

As previously reported, Cantor Fitzgerald analyst Li Watsek upgraded Replimune (REPL) to Overweight from Neutral following news that Vinay Prasad has departed the FDA. The firm’s sense is that the “surprise” complete response letter issued on July 22 was the result of senior leadership, likely Prasad, overruling the review team and it sees the exit of the doctor as “removing a major obstacle” for the potential of the CRL to be overturned. The firm, which sees the “greatly improved” odds of RP1 receiving accelerated approval, expects shares to trade to pre-CRL levels over $12 per share in the case the CRL is overturned, the analyst tells investors.