Jasper Therapeutics stock plummets as BTIG slashes price target on trial issues

Published 07/07/2025, 19:50
Jasper Therapeutics stock plummets as BTIG slashes price target on trial issues

Investing.com - Jasper Therapeutics (NASDAQ:JSPR) stock plunged 54% on Monday after BTIG lowered its price target to $20.00 from $64.00 while maintaining a Buy rating. According to InvestingPro data, this decline adds to the stock’s significant volatility, with JSPR already down 68% year-to-date and trading well below its 52-week high of $26.05.

The significant price target reduction follows complications in the company’s Phase 1b/2a BEACON trial evaluating briquilimab in chronic spontaneous urticaria (CSU). According to BTIG, data from the 240mg Q8W and 240/180mg Q8W cohorts were compromised due to a faulty drug lot that impacted efficacy.

The manufacturing issue has prompted Jasper to pause its asthma trial, while the Phase 2b study start in CSU has been delayed until mid-2026. Despite these setbacks, BTIG noted that efficacy data remains compelling, with complete response rates ranging from 73-89% across other dosing cohorts.

Safety profiles continue to be favorable, with minimal hair and skin color changes and resolvable taste changes and neutrophil count decreases, according to the research firm’s assessment.

BTIG expects updated fourth-quarter data from the affected cohorts as well as additional open-label extension data, maintaining that briquilimab remains "a safe and active drug" despite the timeline shifts and removal of the asthma catalyst.

In other recent news, Jasper Therapeutics has faced significant challenges due to manufacturing issues that have impacted its clinical trials for briquilimab. The company disclosed that a problematic drug product lot affected results in its BEACON study for chronic spontaneous urticaria, leading to delays in the Phase 2b study initiation until mid-2026. This setback has also resulted in halting the ETESIAN asthma trial and discontinuing development in severe combined immunodeficiency. Despite these issues, promising efficacy data was reported, with 89% of participants in certain single-dose cohorts achieving a complete response. Analysts at William Blair downgraded Jasper Therapeutics from Outperform to Market Perform due to these complications. Meanwhile, H.C. Wainwright reduced its price target for the company, citing program delays but maintained a Buy rating. Jasper is implementing cost-cutting measures to extend its cash runway, including pausing some development programs. The company anticipates needing additional capital by the fourth quarter of 2025.

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