Q32 Bio Inc Price Target Cut by Oppenheimer

Investing.com— Oppenheimer has reduced its price target on Q32 Bio Inc (NASDAQ: QTTB) from $80 to $20 after mixed results from two ongoing Phase 2 trials for its Bempikibart treatment.

Despite this reduction, Oppenheimer maintains an Outperform rating for the stock, which saw a significant decline of over 67% in aftermarket trade on Tuesday, falling to $8.122 after the trial results were announced.

Q32 reported that a Phase 2a trial of Bempikibart for treating alopecia areata (AA) demonstrated "encouraging clinical activity." The company plans to expand this trial and enroll more patients.

However, Bempikibart failed to meet its primary endpoint in a Phase 2a trial for atopic dermatitis (AD), which was a principal cause of the stock's sharp decline. As a result, Q32 indicated that it will not move forward with further trials for Bempikibart in AD.

Oppenheimer analysts expressed disappointment in the lack of progress for Bempikibart in AD but noted that the AA opportunity remains "underappreciated" due to its potentially differentiated mechanism of action in a highly underserved area. They were also encouraged by Bempikibart’s safety profile for AA, suggesting potential utility in treating other diseases.