Stifel maintains hold rating on Vor Biopharma stock amid strategic shift

Published 26/06/2025, 13:56
Stifel maintains hold rating on Vor Biopharma stock amid strategic shift

Investing.com - Stifel maintained its Hold rating and $0.30 price target on Vor Biopharma , Inc. (NASDAQ:VOR), currently trading at $0.55, following the company’s strategic repositioning from early-stage oncology to late-stage autoimmune disease. According to InvestingPro data, the stock has surged 159% in the past week.

The research firm acknowledged the significant strategic shift represents a complete repositioning and recapitalization of the company. Stifel noted the transition follows Vor’s May 2025 decision to implement approximately 95% workforce reduction and explore strategic alternatives. InvestingPro analysis shows the company maintains a current ratio of 3.88, indicating sufficient liquid assets to meet short-term obligations despite the restructuring.

Stifel indicated the telitacicept clinical data reported to date supports the dual-targeting mechanism across various autoimmune diseases. The firm believes probability of success assumptions for replicating these benefits across ongoing global Phase 3 trials are "inherently quite high."

The current Hold rating was previously based on a cash-based valuation following the May 2025 workforce reduction. Stifel characterized the telitacicept-focused transaction as a "strategic alternative of surprisingly higher-order interest."

The research firm stated it would require additional diligence and model reconstruction before considering any formal change to its current investment thesis on Vor Biopharma stock.

In other recent news, Vor Bio announced a significant private placement financing expected to generate approximately $175 million in gross proceeds. The funds will be used to advance its clinical pipeline, including the development of telitacicept, a dual-target fusion protein in Phase 3 clinical trials. In another development, Vor Bio has secured exclusive rights to develop and commercialize telitacicept outside Greater China, following an agreement with RemeGen Co., Ltd. The deal includes an initial payment of $125 million and potential milestones exceeding $4 billion. Additionally, Vor Bio appointed Jean-Paul Kress, M.D., as Chief Executive Officer and Chairman of the Board, succeeding Robert Ang. However, the company faced setbacks as Stifel and Baird analysts downgraded Vor Biopharma’s stock, citing clinical and financial concerns. Both firms significantly reduced their price targets, with Stifel lowering it to $0.30 and Baird to $0.25. Vor Bio’s management is now exploring strategic alternatives and has implemented a 95% workforce reduction.

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