Decreasing Visibility: BTIG Downgrades EPRS To Neutral

BTIG's Hartaj Singh downgrades Epirus Biophramaceuticals Inc EPRS from Buy to Neutral. Share were recnelty adown about 18 percent at $0.88.

Epirus made senior management changes Tuesday, as well as a change in strategy moving forward in the fiscal year. CEO Amit Munshi stepped down and board member S. Rocklage will fill in. On the strategy end of things, EPRS will "focus exclusively on BOWo8o (eculizumab biosimilar) and BOWo7o(tocilizumab) in rare diseases," Singh noted.

The company has suspended lead program BOWo15 (biosimilar Remicade) in alignment with the biotech and biosimilar sector that has a "constrained biotech capital raising environment" and tight regulations on multi-product development strategies, Singh stated. This suspension creates a more targeted approach for EPRS moving forward in the year.

Singh believes "it is prudent for Epirus to take the pain now" as it "retrenches its strategy and OPEX."

In light of Epirus' change in direction, Singh suggested a need for more "clarity" regarding the strategy and "OPEX spend and asset dispositions" despite confidence in the new management team.