Graphite Bio slips after downgrade by BofA Securities

Jan. 18, 2023 1:14 PM ETGraphite Bio, Inc. (GRPH)By: Preeti Singh, SA News Editor

Graphite Bio (NASDAQ:GRPH) was down around -9% on Wednesday after BofA Securities downgraded the stock to Neutral from Buy, with a price target of $3 (down from $7).
BofA Securities analysts cited "uncertainty surrounding the development timeline" of its sickle cell candidate nula-cel and "a varied yet early pipeline" for the downgrade.
Graphite Bio (GRPH) voluntarily paused a phase 1/2 study of nula-cel for sickle cell disease early in January following a serious adverse event in the first patient treated. The company also said it no longer anticipates filing an investigational new drug application for GPH102 in beta-thalassemia by mid-2024.
BofA Securities noted: "While the hold on the lead program is concerning for the company, we do not yet know the full story for nula-cel and look for additional updates from the company in 1Q23."