On Monday, Leerink Partners adjusted its price target for 4D Molecular Therapeutics (NASDAQ:FDMT) shares, lowering it to $27 from the previous $31 while maintaining an Outperform rating.
The revision follows the company's recent announcement on Friday regarding updates to its pipeline. 4D Molecular Therapeutics highlighted the prioritization of its 4D-150 program for wet age-related macular degeneration (wAMD) and diabetic macular edema (DME), as well as 4D-710 for cystic fibrosis (CF).
The strategic shift includes extended pruning of the pipeline and the reallocation of resources, which is expected to prolong the company's financial runway into 2028. This extension is seen as supportive of the full execution of its 4FRONT program in wAMD and the early-stage development for DME and CF treatments. The company reported having $506 million in cash and equivalents as of December 31, 2024.
Despite this, 4D Molecular Therapeutics' stock experienced a 5.5% drop on Friday, underperforming the broader biotech index (XBI), which fell by 3%. The decline was attributed to ongoing concerns over the trial cadence and anticipated costs of the 4FRONT trial, with the stock trading below its cash value.
Investors are now looking forward to the 52-week PRISM Dose Expansion/Population Extension injection-free rates expected in February, which could provide insights into the 4FRONT program's potential. Additionally, mid-2025 data on cystic fibrosis is anticipated, following previously unclear data presented at the European Cystic Fibrosis Society (ECFS). This upcoming data is deemed crucial for evaluating the business development potential of the CF program.
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