Tempest Therapeutics downgraded at Scotiabank as amezalpat finds no suitors

Scotiabank analyst George Farmer downgraded Tempest Therapeutics (TPST) to Sector Perform from Outperform with a reverse stock-split adjusted target of $9, down from $91, based on recent developments related to amezalpat. Lack of partner interest in this program, including negligible business development engagement from Roche (RHHBY) beyond the promise of providing a free Phase 3 supply of atezolizumab, indicates “that this is probably a broken story that cannot be repaired without additional early-stage clinical exploration,” the analyst tells investors. The company may ultimately attract a buyer, but the firm would not expect “a significant transaction premium above the current trading range,” the analyst added.