Sam Boughedda

Investing.com —  Adagio Therapeutics Shares of Inc (NASDAQ) fell 13% Wednesday after Jefferies analysts downgraded the stock due to uncertainty about its Covid-19 drug ADG20. This reverses bullish remarks they made last week.

Adagio earlier reported this month that ADG20 data against Omicron showed a greater than 300-fold drop in neutralizing activities. Adagio’s stock price fell to just below 79%.

Jefferies analyst Michael Yee (NYSE:), however, stated that ADG retained its neutralizing ability against the variant in two preprints from respected independent labs. Adagio shares increased 123% in that response. Stephen Willey from Stifel was able to call the story even more complicated after seeing preprints. 

The stock was downgraded by Jefferies analyst Yee to Buy from Hold, and the target price to $10 has been lowered to $46. 

Yee said: “We have moved to HOLD with a 10 PT because of uncertainty over next steps and our development plan. Although the antibody is less effective against omicron viruses (although it has some activity, at most appears to be similar to Omicron antibodies), 

The problem is that it may take many years to find more information. We predict that Phase III could be delayed.

The stock trades at around $8.90 and Yee claimed it is very interesting for levels close to $5. At levels near $10 the “uncertainty” abounds.