Rocket Pharmaceuticals downgraded to Hold from Buy at Jefferies

Jefferies downgraded Rocket Pharmaceuticals (RCKT) to Hold from Buy with a price target of $2.50, down from $29. The FDA clinical hold on the company’s pivotal Phase II program of RP-A501gene therapy for Danon heart disease pushes back timelines and raises some questions around the drug’s overall benefit/risk profile, the analyst tells investors in a research note. The firm thinks the drug could be eventually approved, but would like more clarity on the path forward, such as the time required to lift the FDA clinical hold and then generate pivotal Phase II data.