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Aduro Biotech Downgraded By Oppenheimer On Listeriosis Disclosure

Courtesy of Benzinga.

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  • Aduro BioTech Inc (NASDAQ: ADRO) shares have climbed 51 percent in the last three months, even after hitting a low of $19.03 on September 29.
  • Oppenheimer’s Wendy Lam downgraded the rating on the company to Perform.
  • Although clinical studies continue for CRS-207, the event of one case of listeriosis highlights its potential risk, Lam stated.

Aduro Biotech disclosed one case of listeriosis in a delayed 10-Q filing. The patient had developed symptoms of listeriosis two months ago, and was successfully treated with antibiotics. The patient continues to receive CRS-207

“Whether the case was indeed listeriosis remains an open question. On one hand, only the blood sample from the central line port was positive for CRS-207; sputum, stool, urine, and peripheral vein blood samples were negative. On the other hand, although the exact cause remains debatable, the patient's listeriosislike symptoms resolved with intravenous antibiotic treatment,” analyst Wendy Lam wrote.

The company hosted a conference call to provide additional details. Lam noted the key takeaways from the call:

  1. The investigator could neither confirm Listeriosis nor ruled it out
  2. The event was triggered by a study protocol violation
  3. Aduro had reported the SAE to the FDA a couple of months before and all clinical studies continue

“While the case has been resolved and an FDA hold is unlikely at this point, we believe this event highlights the inherent risk to using attenuated Listeria; we would not be surprised if similar cases arise in the future,” Lam commented.

The downgrade is based on valuation, the analyst said, since the shares now reflect the perceived risk/reward for CRS-207.

Latest Ratings for ADRO

Date Firm Action From To
Dec 2015 Oppenheimer Downgrades Outperform Perform
Oct 2015 Oppenheimer Initiates Coverage on Outperform
Oct 2015 Oppenheimer Initiates Coverage on Outperform

View More Analyst Ratings for ADRO
View the Latest Analyst Ratings

Posted-In: Oppenheimer Wendy LamAnalyst Color Downgrades Analyst Ratings


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