UPDATE: BMO Capital Markets Downgrades Tranzyme to Market Perform, Lowers PT
In a report published Friday, BMO Capital Markets downgraded its rating on Tranzyme (NASDAQ: TZYM) from Outperform to Market Perform, and lowered its price target from $6.00 to $1.00.
BMO Capital noted, “We are downgrading our TZYM to Market Perform and reducing our price target to $1.00. We believe that likelihood of success in the ongoing DIGEST study is low and believe that phase 2b results raise questions regarding pharmacologic effects of the drug and the role of ghrelin agonism in diabetic gastroparesis overall. Absence of benefit in any GSDD symptom subset and lack of dose response is particularly concerning and we are doubtful that a local effect will add much to systemic effects over a 12-week period.”
Tranzyme closed on Thursday at $0.95.
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