UPDATE: Canaccord Genuity Downgrades Tranzyme to Hold, Lowers PT

In a report published Friday, Canaccord Genuity downgraded its rating on Tranzyme

to Hold, and lowered its price target to $1.50. Canaccord Genuity noted, “Lowering to HOLD, decreasing target to $1.50 on lowered probability of TZP-102 success in diabetic gastroparesis. Our valuation is driven by the TZP-102 for gastroparesis, and after this Ph2b trial miss, we lower our probability of success to 10% from 40%. Our pNPV-derived target of $1.50 is based on TZP-102's chances of clinical and regulatory success.” Tranzyme closed on Thursday at $0.95.