Rocket Pharmaceuticals downgraded to Hold from Buy at TD Cowen

TD Cowen downgraded Rocket Pharmaceuticals (RCKT) to Hold from Buy without a price target after the company said a Danon disease patient participating in the Phase 2 pivotal trial of RP-A501 experienced an unexpected serious adverse event related to a capillary leak syndrome. On May 23, the FDA placed a clinical hold on the trial. The patient has since passed away after an acute systemic infection. While the C3 inhibitor that was added led to the infection and ultimately death and presumably could be removed, it was in response to thrombotic microangiopathies that were already observed in the pivotal trial with RP-A501, the analyst tells investors in a research note. Given the “unresolved safety risk” and Rocket’s cash runway, TD believes it is prudent to move to the sidelines on the shares until it is resolved.