- Rocket Pharmaceuticals Inc’s stock price plummeted by 62.8% following a serious adverse event in a Phase 2 trial.
- Analysts have downgraded the stock and lowered price targets significantly in response to the trial’s outcome.
- Despite the setback, the stock has shown some recovery, with a current price reflecting a 6.65% increase.
Rocket Pharmaceuticals Inc (NASDAQ:RCKT) is a biotechnology company focused on developing gene therapies for rare and devastating diseases. Recently, the company faced a significant challenge with its investigational gene therapy, RP-A501, designed for Danon disease. This rare genetic disorder affects the heart, muscles, and cognitive function. Unfortunately, a patient in the Phase 2 trial experienced a serious adverse event, leading to their passing.
Following this tragic event, RCKT’s stock price dropped sharply by 62.8%, closing at $2.33. This decline prompted analysts to reassess their forecasts. Andrew Tsai from Jefferies downgraded the stock from Buy to Hold, reducing the price target from $29 to $2.50. Similarly, Chardan Capital’s Geulah Livshits maintained a Buy rating but lowered the target from $46 to $17.
Despite the setback, the stock has shown some recovery. It is currently priced at $2.49, reflecting a 6.65% increase. The stock has fluctuated between $2.35 and $2.64 today. Over the past year, RCKT has seen a high of $26.98 and a low of $2.19, indicating significant volatility.
RCKT’s market capitalization stands at approximately $267.7 million, with a trading volume of 12,974,086 shares on the NASDAQ exchange. Despite recent challenges, Jim Cramer describes Rocket as a “very fine” company, suggesting potential for future investment in this healthcare stock.
