Crispr Therapeutics shares tumble after significant earnings miss
Investing.com - Cantor Fitzgerald downgraded Jasper Therapeutics (NASDAQ:JSPR) from Overweight to Neutral on Monday following disappointing clinical trial updates. According to InvestingPro data, the company, currently valued at approximately $47 million, has been demonstrating significant stock price volatility.
The downgrade comes after Jasper Therapeutics disclosed updates for its Phase 1b/2a BEACON study of briquilimab, a c-Kit inhibitor monoclonal antibody being developed for chronic spontaneous urticaria.
According to Cantor Fitzgerald, the company reported a lack of briquilimab activity in certain cohorts, which researchers believe may be due to a compromised drug lot. This issue has pushed out development timelines for the therapy.
Jasper Therapeutics stock fell more than 50% following the announcement, significantly underperforming the broader biotech sector as measured by the XBI, which changed approximately 2%.
Cantor Fitzgerald cited uncertainty around clinical trial execution and development timelines as key factors in its decision to downgrade the stock, stating it would maintain a Neutral rating until receiving updates that provide clarity on these events and concrete decisions on the go-forward Phase 2b dose regimens and development timelines.
In other recent news, Jasper Therapeutics has faced significant challenges in its clinical trials, primarily due to manufacturing issues affecting its chronic spontaneous urticaria (CSU) program. The company reported that a problematic drug product lot compromised results in its BEACON Phase 1b/2a study, necessitating additional patient enrollment and delaying the data readout to the fourth quarter of 2025. This setback has also pushed the planned Phase 2b study to mid-2026. In response to these challenges, Jasper announced the cancellation of its asthma trial and the termination of its severe combined immunodeficiency (SCID) program to focus resources on urticaria development. Analyst firms have reacted to these developments, with TD Cowen reiterating a Buy rating, while William Blair downgraded the stock from Outperform to Market Perform. BTIG and H.C. Wainwright have both lowered their price targets, citing the delays in the CSU program. Despite these setbacks, Jasper has reported favorable safety profiles in its trials, with no grade 3 or higher treatment-related adverse events observed. The company is also implementing cost-cutting measures to extend its cash runway, including potential restructuring.
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