The stock of Durham drug developer BioCryst Pharmaceuticals dropped 15 percent in value after WellsFargo analysts downgraded the company Monday.
WellsFargo didn’t lower its projected trading range for the company but notched down BioCryst’s rating from “Outperform” to “Market Perform,” indicating a less optimistic financial outlook.
The stock dropped $1.79 per share and closed at $9.81 Monday, landing in the middle of the WellsFargo range of $9 to $10 per share. Wells Fargo analysts believe the company continues to demonstrate potential “but see the current stock price as providing a less compelling entry point.”
BioCryst has no products on the U.S. market but is developing Peramivir, an influenza treatment, and 4161, an oral treatment for angioedema, a rare disease that results in swelling and painful welts.
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In December, BioCryst submitted a new drug application for Peramivir. The company, which has 38 employees, is preparing to make the treatment available in the U.S. in time for the 2014-15 influenza season if event approval is received in that time frame.
The federal government had supplied $235 million to develop Peramivir, which rapidly delivers plasma to infection sites to inhibit the spread of influenza. It was approved in Japan and Korea in 2010.