Jasper Therapeutics stock downgraded by BMO Capital on CSU trial concerns

Published 07/07/2025, 22:36
Jasper Therapeutics stock downgraded by BMO Capital on CSU trial concerns

Investing.com - BMO Capital downgraded Jasper Therapeutics (NASDAQ:JSPR) from Outperform to Market Perform on Monday, while maintaining a price target of $4.00. The stock, currently trading at $3.04, has experienced significant volatility, with a -68% year-to-date return despite showing strong momentum in recent weeks. According to InvestingPro data, the overall analyst consensus remains bullish at 1.64 (on a scale of 1-5, where 1 is Strong Buy).

The rating change follows a management update on the company’s Briquilimab clinical trial for chronic spontaneous urticaria (CSU), which revealed potential manufacturing issues that complicated data interpretation.

BMO Capital noted that the trial data showed 240mg/360mg single-dose results suggesting plateauing exposure and efficacy, while 240mg and 240mg/180mg Q8W efficacy and safety data were likely confounded by product lot issues.

The firm also highlighted preliminary 180mg Q8W open-label extension data that appeared in line with blinded data, describing the new information as "somewhat encouraging" despite the complications.

BMO Capital explained its downgrade by stating that "given the market environment and previous setback here, we believe investors won’t feel comfortable coming back to the story following today’s update," citing difficulties in separating "signal from the noise" in the trial results.

In other recent news, Jasper Therapeutics has faced several developments concerning its clinical trials. The company reported delays in its Phase 1b/2a BEACON study for briquilimab due to issues with a drug product lot, affecting results and extending timelines. Jasper plans to enroll additional patients, with the next data readout expected in the fourth quarter of 2025, and the Phase 2b study now scheduled for mid-2026. Evercore ISI, despite lowering its price target from $50 to $20, maintained an Outperform rating, citing confidence in Jasper’s dosing regimen. Meanwhile, Cantor Fitzgerald downgraded the stock to Neutral, citing uncertainties in trial execution and timelines. TD Cowen reiterated a Buy rating, appreciating the strategic focus on urticaria, despite delays. BTIG also reduced its price target to $20, maintaining a Buy rating and noting the drug’s compelling efficacy data. William Blair downgraded Jasper to Market Perform, acknowledging the trial setbacks but highlighting promising results from an open-label extension study. Jasper has decided to halt its asthma trial and discontinue its severe combined immunodeficiency program to concentrate efforts on chronic spontaneous urticaria development.

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