- Jefferies has cut Gemini Therapeutics Inc (NASDAQ:GMTX) to Hold as the Company explores alternatives.
- The analyst Chris Howerton has also reduced the price target to $1.50, down from $23 after the Company announced a CEO transition and reprioritization.
- He has reduced the odds of success of GEM103 to 0% in his model to arrive at his new price target, Howerton noted.
- Yesterday, Gemini announced its plans to reduce its workforce by approximately 80% and is exploring strategic alternatives after halting GEM103 Phase 2a trials in GA and wet AMD trials in January.
- This is the second reprioritization for Gemini in less than six months. In October, the Company shook things up to focus on late-stage plans for its eye disease drug. But that was short-lived, and the biotech has also begun evaluating strategic alternatives.
- The latest layoffs will affect 24 employees. President and CEO Jason Meyenburg also departed, as Executive Chair Georges Gemayel assumes the vacant roles on an interim basis.
- Gemini disclosed in an SEC filing that restructuring charges would land in the $1.6 million to $1.9 million range.
- Price Action: GMTX shares are down 11.8% at $1.20 during the market session on the last check Tuesday.
