Craig-Hallum lowered the firm's price target on Grace Therapeutics to $4 from $11 and keeps a Buy rating on the shares following the CRL to GTx-104. FDA cited CMC issues, specifically calling out deficiencies at the company's CDMO, as well as some non-clinical concerns related to leachables characterization for final packaging, and toxicology risk assessments, the firm notes. Craig-Hallum believes Grace has enough runway to address the deficiencies and resubmission, though shares are unlikely to move higher until further visibility is provided.
