Alliance Global Cuts Capricor (CAPR) Price Target From $51 to $7 on Tuesday

According to The Fly, Alliance Global Partners downgraded Capricor Therapeutics to Neutral from Buy on Tuesday, cutting its price target by 86% to $7 from $51. The brokerage cited a lower probability of FDA approval for Deramiocel, a higher discount rate, and a reduced sales outlook.

The downgrade follows the FDA's release of briefing documents questioning whether the company's HOPE-3 trial provided convincing evidence of effectiveness for its Duchenne muscular dystrophy therapy. The FDA noted the study missed its pre-specified primary endpoint and a key secondary endpoint related to heart function. CEO Linda Marban told Reuters the company was "completely shocked" by the FDA's review approach.