Generation Bio on Tuesday said that it is evaluating strategic alternatives to maximize the value of its assets for shareholders and implementing a strategic restructuring expected to result in a 90% reduction in workforce.
Wedbush analyst David Nierengarten on Wednesday downgraded Generation Bio (GBIO) to ‘Neutral’ from ‘Outperform’ with a $7 price target after the company announced a strategic restructuring. Shares of the firm traded over 31% higher in Tuesday’s pre-market session.
Generation Bio on Tuesday announced that it is evaluating strategic alternatives to maximize the value of its assets for shareholders. The company indicated that options include an acquisition, merger, business combination, sale of assets, or other strategic transactions, while noting that there is no assurance of the exploration resulting in a transaction. The company also said it is implementing a strategic restructuring in the meantime, expected to result in about 90% workforce reduction by the end of October.
Based on the indefinite postponement of lead candidate selection and development plans, Wedbush said it is moving to the sidelines as the company seeks strategic alternatives.
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