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On Monday, Jefferies analyst issued a revised price target for 4D Molecular Therapeutics (NASDAQ:FDMT) stock, lowering it to $40 from the previous $51, while maintaining a Buy rating. Currently trading at $5.48, FDMT has seen significant volatility, with analyst targets ranging from $6 to $72. According to InvestingPro data, the stock has declined nearly 80% over the past year. The adjustment follows the company’s updated durability data in Phase 2 for patients with broad/newly diagnosed wet Age-related Macular Degeneration (wAMD). According to the analyst’s comments, 57% and 80% of patients remained injection-free after 52 weeks, a decrease from the earlier figures of 70% and 87%.
The analyst highlighted that despite the decline in patients staying injection-free, the treatment burden reduction of 83% and 94% is seen as a positive development. Medical (TASE:PMCN) professionals consider this matrix to be more significant compared to the injection-free metric. While the company maintains strong liquidity with a current ratio of 17.33, InvestingPro analysis indicates rapid cash burn and weak profit margins. However, the analyst noted that investors might be looking for longer follow-up periods to fully evaluate the treatment’s commercial competitiveness.
4D Molecular Therapeutics is planning to initiate two Phase 3 trials for wAMD, one in the first quarter and another in the third quarter of 2025, with topline results expected in the second half of 2027. Based on these timelines, the analyst now anticipates a market launch for the treatment in 2029, which has been factored into the new price target of $40. According to InvestingPro’s Fair Value analysis, FDMT appears undervalued at current levels. Subscribers can access 12 additional ProTips and a comprehensive research report for deeper insights into FDMT’s financial health and market position.
In other recent news, 4D Molecular Therapeutics announced positive interim results from the Phase 2b Population Extension cohort of the PRISM clinical trial, evaluating the efficacy of 4D-150 in patients with wet age-related macular degeneration (wet AMD (NASDAQ:AMD)). The data showed a significant reduction in the need for supplemental aflibercept injections, with patients experiencing an 83% reduction in supplemental injections. The company plans to initiate two additional trials, 4FRONT-1 and 4FRONT-2, in 2025.
Meanwhile, H.C. Wainwright reaffirmed a Buy rating on shares of 4D Molecular Therapeutics, highlighting the positive results from the PRISM trial. On the other hand, Leerink Partners lowered its price target for the company’s shares, following updates to its pipeline, while BMO Capital Markets downgraded the company’s stock from Outperform to Market Perform, citing potential challenges with the market reach and durability of 4D-150.
The company also announced a strategic refocusing of its development pipeline, prioritizing 4D-150 for wet AMD and diabetic macular edema, and 4D-710 for cystic fibrosis. As a result of the strategic refocus, 4D Molecular Therapeutics extended its cash runway, with funds expected to last into 2028. These are among the latest developments for 4D Molecular Therapeutics.
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