JPMorgan downgrades Athenex on 'huge surprise' from FDA

JPMorgan analyst Ling Wang downgraded Athenex to Neutral from Overweight with a price target of $7, down from $30. The stock closed Monday down 55%, or $6.64, to $5.46. The Complete Response Letter from the FDA in relation to the Oraxol filing in metastatic breast Cancer is a "huge surprise," Wang tells investors in a research note. The analyst is "very puzzled and disappointed" with the outcome and awaits further clarity upon management's meeting with the FDA. The setback opens up downside risk in the shares "due to a lack of clear near-term key value driver," says Wang. The analyst is concerned that the stock move may not wait till there is "full visibility."