Stifel cuts vTv Therapeutics to hold; PT to $1 from $12

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Stifel downgraded vTv Therapeutics (NASDAQ:VTVT) to “hold” from “buy” and slashed its price target to $1 from $12 after the company reported negative top line results from its Phase 3 STEADFAST study in mild Alzheimer’s disease patients. The stock closed at $3.26 on April 9.

Part A did not achieve statistical significance in either of its co-primary endpoints. In addition, vTv also announced it is discontinuing STEADFAST Part B that was expected to produce data in early 2019.

“As a result, we are adjusting our Azeliragon probability-of-success from 50% to 0%,” writes analyst Alex Schwartz.

“We see value in vTv Therapeutics' two underlying diabetes assets that each possess positive Phase 2 data,” he added. “However, given vTv's cash on hand, extended search to find partners for the programs, and length/costs to conduct Phase 3 trials, we see a challenging road ahead for the company.”

Sydney Stewart