Citi Downgrades Mirna Therapeutics To Neutral

Mirna Therapeutics Inc MIRN has cancelled or postponed its earlier plans to initiate two Phase 2 trials for MRX34. Citi’s Yigal Nochomovitz downgraded the rating on the company from Buy to Neutral, while reducing the price target from $7 to $4.50.

Patient Death

Earlier this month, a patient enrolled in the Phase 1 study of MRX34 [microRNA replacement therapy] suffered a serious adverse event, or SAE, which was increased ALT and AST liver function tests. The patient subsequently died. Mirna Therapeutics had reported the event to the FDA and is awaiting a response.

“This marks the 3rd suspected treatment-related death in Ph1 (2 of which were possibly immune-related),” Nochomovitz wrote.

Change In Plans

Mirna Therapeutics had been planning on commencing two Phase 2 trials, for melanoma and RCC, by the end of this year. Following the SAE, the company has cancelled those plans for now, till there is more data from the Phase 1 and Phase 1b trials.

Lower Peak Sales

Nochomovitz reduced the estimate for peak share in liver from 20 percent to 10 percent, which maintaining the peak share estimate in lung at 10 percent.

“We model MRX34 as a combo therapy with TKIs sorafenib and erlotinib in liver and lung respectively,” the analyst wrote. He added, “We can no longer recommend the stock given heightened safety/mechanism concerns.”

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