IvelinRadkov
Oppenheimer downgraded its rating of Ventyx Biosciences (NASDAQ:VTYX) to perform, citing the company’s decision to discontinue development of its drug VTX958 for plaque psoriasis and psoriatic arthritis due to disappointing Phase 2 clinical data.
Oppenheimer said that Ventyx still maintains a “healthy” balance sheet of $301M as of the end of Q3. The company also has several clinical stage programs, with Phase 1 and Phase 2 results for two compounds targeting NLRP3 expected in Q1 2024.
The investment bank said VTX958 represented around 85% of the value in its models for the company. It added that disappointing results for VTX958 and another drug, VTX002, “has us moving to the sidelines while the company adjusts.”
Oppenheimer also removed its price target on the stock.