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Recording a ~33% decline, the biggest intraday selloff since early December, the shares of Reata Pharmaceuticals (NASDAQ:RETA) approached a three-month low on Monday, even as Goldman Sachs issued positive views on the clinical-stage company after a potential regulatory setback.
With its 2Q 2022 results, the company said that during a meeting with the FDA regarding Reata’s (RETA) marketing application for Friedreich’s ataxia therapy omaveloxolone, the agency raised concerns over the strength of the efficacy data currently under review.
With the safety review ongoing, the agency has not identified any major clinical safety events and the company has yet to receive the formal minutes from the FDA.
In February, the FDA rejected bardoxolone methyl, another of Reta’s (RETA) most advanced candidates, targeted at chronic kidney disease caused by Alport syndrome.
However, Goldman Sachs sees an attractive risk-reward setup for Reata (RETA) and raises the price target on Monday to a new Street high of $76 per share. The firm maintained the Buy rating.
Even in May, Goldman raised its price target on the stock to a Street high of $93, citing the regulatory path for omaveloxolone in Friedreich’s ataxia.
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Image and article originally from seekingalpha.com. Read the original article here.