enGene (ENGN) is experiencing "reduced confidence" from physicians that the company's LEGEND clinical trial to treat patients with non-muscle invasive bladder cancer would support significant adoption of detalimogene, Morgan Stanley analysts wrote Thursday in a note to clients.
"We still believe that detalimogene's safety and simple handling/administration could increase its appeal in some community practices, but detalimogene's competitiveness on efficacy/durability likely negatively impacts commercial prospects," the analysts wrote.
The analysts said expert feedback has indicated that detalimogene's current durability profile is "simply not competitive," and that it may be "relegated to a late position in the sequencing order."
Morgan Stanley downgraded the stock to underweight from equal-weight. enGene has an average rating of hold and a mean price target of $6.85, according to analysts polled by FactSet.
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