UPDATE: Canaccord Genuity Downgrades Coronado Biosciences Following TRUST-1 Trial Miss

In a report published Tuesday, Canaccord Genuity analyst Salveen Richter downgraded the rating on

from Buy to Hold, and lowered the price target from $18.00 to $2.00. In the report, Canaccord Genuity noted, “This morning, CNDO announced that the Phase 2 TRUST-1 trial of Trichuris suis ova (TSO) in Crohn's disease missed its primary and secondary endpoints of improvements versus placebo in response and remission, respectively. While management sees activity in patients with more severe disease (patients with baseline Crohn's disease activity index (CDAI) >290 treated with TSO demonstrated non-significant improvement vs. placebo; would have been significant if the entire population demonstrated the same delta) and noted the possibility of moving forward in a population subset, we await detailed data and have questions on the TSO platform given TRUST-1 was critical in validating this approach. As a result, we are downgrading CNDO to HOLD from Buy and lowering our PT to $2 from $18. We look to the TRUST-2 data by YE13 to provide any rationale to move forward in Crohn's disease, with Phase 2a IST data in autism, psoriasis and MS in H1/14 for further color on the TSO profile.” Coronado Biosciences closed on Monday at $1.91.