NVIDIA launches Jetson Thor robotics computers for physical AI systems
On Tuesday, Citizens JMP analysts downgraded Rallybio Corp. (NASDAQ:RLYB) stock rating from Market Outperform to Market Perform. The decision came after Rallybio announced the discontinuation of its FNAIT program due to RLYB212 failing to achieve the required pharmacokinetic (PK) profile in a clinical trial. The news has intensified the stock's decline, which according to InvestingPro data, has fallen over 74% in the past year to $0.24, though current analysis suggests the stock may be undervalued. The sentinel pregnant woman dosed with RLYB212 did not reach the minimum target PK concentration, leading to the termination of the program.
The analysts at Citizens JMP removed RLYB212 from their valuation, which prompted the downgrade. They noted that there isn't sufficient data to safely adjust the dosage of RLYB212. Prior to the discontinuation, Rallybio's shares were already trading at approximately 25% of the year-end 2024 cash projection. InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 10.87, though it's currently burning through cash with an EBITDA of -$57.06 million. The analysts expect the stock to continue trading at a significant discount to its cash balance, which they consider fair and consistent with other biotech companies facing similar levels of uncertainty.
The report also mentioned that while phase 1 data for Rallybio's differentiated C5 inhibitor, RLYB116, expected in the second half of 2025, could potentially attract investor interest, this program is not currently factored into their valuation. The analysts stated that they will reassess the program's potential once they can review the data and after management has provided a clear strategy moving forward.
The downgrade reflects a more cautious stance from Citizens JMP regarding Rallybio's prospects, given the recent setback with the FNAIT program. The firm advises a wait-and-see approach until more information is available on the company's other developmental programs. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 16 additional ProTips and a detailed research report, helping navigate this challenging period for Rallybio's stock.
In other recent news, Rallybio Corporation announced the discontinuation of its RLYB212 program after Phase 2 trial results failed to meet efficacy targets for preventing fetal and neonatal alloimmune thrombocytopenia (FNAIT). The decision followed findings that the drug did not achieve the necessary pharmacokinetic concentrations. Despite this setback, Rallybio is shifting focus to its other pipeline projects, including RLYB116 and preclinical programs like REV102 and RLYB332. Additionally, Rallybio has amended its sales agreement with TD Securities, reducing its potential stock offering from $100 million to $9.55 million. The company retains the flexibility to suspend or terminate the offering at any time. In another development, Rallybio received a notice from Nasdaq, indicating the risk of delisting due to its stock not meeting the minimum required closing bid price. Rallybio has 180 days to address this issue to regain compliance. The company is actively monitoring its stock price and exploring options to resolve the deficiency.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.