Citizens JMP maintains Rallybio stock at Market Perform

Published 23/04/2025, 10:16
Citizens JMP maintains Rallybio stock at Market Perform

Wednesday

Citizens JMP has maintained its Market Perform rating on Rallybio Corp (NASDAQ:RLYB) stock. The firm’s analyst, Jonathan Wolleben, provided insights into the biopharmaceutical company’s strategic shift following the discontinuation of its lead FNAIT program. Rallybio is now concentrating its efforts on RLYB116, a differentiated C5 inhibitor, with Phase 1 data expected to be released in the second half of 2025, which may renew investor interest. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 10.87 and more cash than debt on its balance sheet, though it’s currently burning through cash rapidly.

Wolleben noted that Rallybio’s management is aiming for rapid, complete, and sustained inhibition of the complement pathway, with pharmacokinetic and pharmacodynamic (PK/PD) data anticipated from two separate cohorts. The first set of data from Cohort 1, which involves a 150 mg dosage, is expected in the third quarter, while results from Cohort 2, with a 225 mg dosage, are slated for the fourth quarter.

The analyst expressed that although the RLYB116 program is not currently factored into their valuation, the potential utility of the drug is considered intriguing. The broad potential utility of the C5 inhibitor is seen as a positive aspect, and the analyst is looking forward to updates from the company’s management on the strategic direction and progress of the program.

Rallybio’s focus on RLYB116 comes after the company recently ceased its lead program for FNAIT, a decision that has shifted its research and development priorities. The forthcoming Phase 1 data has the potential to de-risk the program and possibly attract investor attention back to the company.

The company’s stock performance will be closely watched as it progresses through the upcoming quarters, with investors likely to keep an eye on the release of the PK/PD data from the two cohorts. According to InvestingPro, technical indicators suggest the stock is currently in oversold territory, while analysts anticipate sales growth in the current year despite the company not being expected to turn profitable. The updates from Rallybio’s management on the development of RLYB116 will provide further insights into the company’s future prospects and potential impact on its stock valuation. For deeper insights into Rallybio’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Rallybio Corporation announced the discontinuation of its RLYB212 program after Phase 2 trial results failed to meet the necessary pharmacokinetic concentrations for the treatment of fetal and neonatal alloimmune thrombocytopenia (FNAIT). This decision led to a downgrade by Citizens JMP, which changed the stock rating from Market Outperform to Market Perform, removing RLYB212 from its valuation. Evercore ISI also downgraded Rallybio from "Outperform" to "In Line," citing concerns over the company’s study data. Despite the setback, Rallybio plans to advance its RLYB116 program, with phase 1 data expected in the second half of 2025. Additionally, the company has revised its common stock offering to $9.55 million, significantly reducing it from the previous $100 million. This amendment was made under its sales agreement with TD Securities. Rallybio continues to focus on its pipeline, including preclinical programs such as REV102 and RLYB332. These developments reflect the company’s strategic adjustments in response to recent challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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