On Friday, MacroGenics Inc. (NASDAQ:MGNX) experienced a change in its stock rating, as it was downgraded from Buy to Hold by TD Cowen. The reassessment came after new data raised significant safety questions related to the company's drug trials.
The TD Cowen analyst cited promising efficacy results in the drug's performance, with a 44% and 37% cPSA50s and an 18% and 25% cORRs at dosages of 2.0mg and 2.7mg, respectively. Despite these results, the safety profile of the drug has come into question following recent disclosures.
The concerns highlighted by the analyst revolve around the nature and timing of reported fatalities that were disclosed. The specifics of these safety issues have prompted the analyst to adjust their stance on the stock, reflecting the newly surfaced information.
As a result of the safety concerns, MacroGenics saw a reaction in its stock performance following the announcement. The downgrade to Hold reflects a more cautious outlook on the stock's potential performance.
Investors and stakeholders in MacroGenics are now faced with this updated evaluation as they consider the implications of the safety data on the company's future prospects. The market's response to the downgrade will continue to unfold as more details potentially emerge.
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