William Blair downgrades VistaGen to Market Perform after MDD trial miss
As previously reported, William Blair analyst Tim Lugo downgraded VistaGen Therapeutics to Market Perform from Outperform after the company announced that the Phase 2 ELEVATE study of AV-101 for the adjunctive treatment of major depressive disorder, or MDD, failed to meet its primary endpoint. The failure of ELEVATE is a setback, but he still views PH94B and PH10 as "intriguing assets," Lugo tells investors. Though he thinks both of those programs hold value, Lugo is concerned with the company's cash position, with $4M on hand as of the last quarter, and its ability to execute on the opportunities he sees for PH94B and PH10, the analyst added. In morning trading, VistaGen is down 72c, or 68%, to 35c per share.