Rocket Pharmaceuticals price target lowered to $9 from $32 at BofA

BofA analyst Jason Zemansky lowered the firm’s price target on Rocket Pharmaceuticals (RCKT) to $9 from $32 and keeps a Buy rating on the shares, calling Rocket’s announcement of a death in its RP-A501 Phase 2 study for rare disorder Danon “tragic on multiple levels.” The news is a clear setback for patients with limited options and is likely to add to the growing list of emerging safety, regulatory, and commercial questions that have weighed on gene-therapy developers of late, the analyst tells investors. While the firm sees a “clear rationale for resuming development,” particularly given Rocket’s “strong argument” its C3 inhibitor was the cause of the fatal outcome, convincing a now more cautious agency, community, and investors “may not be straightforward,” leaving uncertainty not only over the A501 opportunity but the overall investment thesis for Rocket despite its pipeline’s value, the firm added.