Cogent Biosciences Inc. (COGT, -1.48%) experienced a significant drop in its shares, falling more than 30% premarket on Monday. The decline came after the release of clinical trial data for the company's lead drug candidate, which failed to outshine potential competitors, according to analysts.
The trial focused on bezuclastinib, a treatment for nonadvanced systemic mastocytosis, a rare blood disorder characterized by an excessive buildup of mast cells in the body. Cogent announced on Friday at the American Society of Hematology annual meeting in San Diego that all patients treated with bezuclastinib achieved a minimum of 50% improvement in relevant biomarker measures.
However, analysts from Leerink Partners noted that the trial results did not clearly distinguish bezuclastinib from Ayvakit, a mastocytosis treatment developed by Blueprint Medicines Corp. (BPMC, +0.27%), which is already available on the market.
Despite this setback, Cogent's president and CEO, Andrew Robbins, expressed confidence in bezuclastinib, stating that the emerging profile of the drug in mastocytosis patients is highly encouraging. The company aims to swiftly progress to the second part of its phase 2 trial.
Although the Leerink analysts maintained their outperform rating on Cogent shares, they revised their price target for the stock from $20 to $15. As of the year-to-date, Cogent shares have declined by 25%, while the S&P 500 (SPX, +0.41%) has experienced a 19.9% increase.
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Clinical Trial Challenges for Cogent Biosciences Inc.
Cogent Biosciences Inc. (COGT, -1.48%) faced a significant setback in its clinical trial for bezuclastinib, the company's lead drug candidate. The trial focused on patients with nonadvanced systemic mastocytosis, a rare blood disorder characterized by excess mast cell accumulation.
During the trial, all patients treated with bezuclastinib saw a minimum 50% improvement in relevant biomarker measures. However, analysts from Leerink Partners expressed concerns that the results did not differentiate bezuclastinib clearly enough from Ayvakit, a competing mastocytosis treatment already available from Blueprint Medicines Corp. (BPMC, +0.27%).
Despite these challenges, Cogent president and CEO Andrew Robbins remains optimistic about bezuclastinib's potential in mastocytosis patients. The company intends to expedite the second phase of its trial to further explore the drug's capabilities.
While Leerink Partners maintained an outperform rating for Cogent shares, they have adjusted the price target to $15, down from $20 previously. Cogent shares have experienced a 25% decline year-to-date, in contrast to the S&P 500's (SPX, +0.41%) 19.9% increase.
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