Analysts Are Downgrading These 10 Pharmaceutical Stocks

Published April 20, 2022 at 9:17 am EDT Updated September 7, 2026 at 2:07 pm EDT

In this article, we present the 10 pharmaceutical stocks that are being downgraded by analysts.

The pharmaceutical industry always remains in focus as investors scramble to find innovative companies working on treatments of diseases. The COVID-19 pandemic further highlighted the importance of biotech and pharmaceutical industries. According to a report by Deloitte, since 2020, the proportion of late-stage pipelines focused on infectious disease assets has grown by 4%. However, the enthusiasm around biotech and pharma stocks seen immediately after the pandemic is slowing down. The SPDR S&P Biotech ETF was down close to 20% in the first quarter of 2022, as compared to a 5% decline for the S&P 500. Still, analysts believe that notable pharmaceutical and biotech stocks like Pfizer Inc. (NYSE:PFE), Bristol-Myers Squibb Co (NYSE:BMY) and AbbVie Inc (NYSE:ABBV) have long-term growth potential because of their strong pipelines and massive R&D budgets.

Photo by National Cancer Institute on Unsplash

In this article we will take a look at some pharmaceutical stocks that were recently downgraded by notable analyst firms.

10. Recursion Pharmaceuticals Inc. (NASDAQ:RXRX)

Number of Hedge Fund Holders: 14

Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) is a Utah-based digital biology company that is known for its Recursion Operating System or Recursion OS. The company is working on drug discovery technologies using AI and machine learning. BofA analyst Michael Ryskin recently downgraded Recursion Pharmaceuticals Inc. to Neutral from Buy with a $10 price target. The downgrade comes after the analyst attended a meeting organized by the American Association for Cancer Research and also analyzed Recursion’s fourth-quarter results posted last month. Recursion Pharmaceuticals Inc. posted a GAAP EPS of -$0.38 for the period. Revenue in the quarter declined about 6% to come in at $2.53 million.

In March, Recursion Pharmaceuticals Inc. started enrollment in the phase 2 trial of REC-994 to treat a neurovascular disorder.

9. Nektar Therapeutics (NASDAQ:NKTR)

Number of Hedge Fund Holders: 24

Nektar Therapeutics (NASDAQ:NKTR) is a California-based company that uses cytokine pathways and other mechanisms to selectively modulate the immune system for the treatment of several diseases including cancer, autoimmune disorders, and chronic inflammatory conditions.

Goldman Sachs analyst Chris Shibutani recently downgraded Nektar Therapeutics to Sell from Neutral after the company said it has decided to terminate the bempeg development program as a result of the bempeg plus nivolumab combination failing to show in first-line renal cell carcinoma. The analyst maintained his price target of $3 for the stock.

Mizuho analyst Mara Goldstein also lowered Nektar Therapeutics’s price target to $6 from $8.

Of the 924 funds tracked by Insider Monkey, 24 had stakes in the company at the end of the fourth quarter. Hedge funds prefer popular and well-established names like Pfizer Inc., Bristol-Myers Squibb Co and AbbVie Inc (NYSE:ABBV).

8. BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX)

Number of Hedge Fund Holders: 19

BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) is a North Carolina-based late-stage biotech company that focuses on oral drugs for rare and serious diseases. BioCryst Pharmaceuticals, Inc. is known for its antiviral drug peramivir that was approved by FDA in December 2014. After the pandemic, small antiviral drug companies were gaining a lot of popularity, along with major companies like Pfizer Inc., Bristol-Myers Squibb Co and AbbVie Inc (NYSE:ABBV).

BioCryst Pharmaceuticals, Inc. is losing ground after the stock was downgraded by Barclays analyst Gena Wang. Wang downgraded the stock to Equal Weight from Overweight with a price target of $13, down from $22. The analyst cited “uncertainty” around Factor D inhibitor BCX9930 in paroxysmal nocturnal hemoglobinuria for his downgrade.

7. Antares Pharma, Inc. (NASDAQ:ATRS)

Number of Hedge Fund Holders: 12

Antares Pharma, Inc. (NASDAQ:ATRS) focuses on self-injection, pharmaceutical products, and technologies with an emphasis on rheumatology, urology, endocrinology, and neurology. Antares Pharma, Inc. is losing ground after it was downgraded by several analyst firms. Truist analyst Gregory Fraser downgraded Antares Pharma, Inc. to Hold from Buy with a price target of $5.60, down from $7.00. The downgrade came after California-based biotechnology company Halozyme announced its plans to acquire Antares Pharma, Inc. for $5.60 per share.

Raymond James analyst Elliot Wilbur also downgraded Antares Pharma, Inc. to Market Perform from Strong Buy after the deal announcement.

6. Bicycle Therapeutics plc (NASDAQ:BCYC)

Number of Hedge Fund Holders: 21

Bicycle Therapeutics plc (NASDAQ:BCYC) is focusing on the treatment of cancer through synthetic short peptides constrained to form two loops that stabilize their structural geometry. B. Riley analyst Kalpit Patel recently downgraded Bicycle Therapeutics plc (NASDAQ:BCYC) to Neutral from Buy with a price target of $33, down from $62. The analyst’s downgrade comes after he spoke to a physician-scientist focused on treating patients with genitourinary malignancies. The expert does not see a clear path to approval of BT8009 unless it shows “meaningful” activity in other indications.

Unlike Pfizer Inc., Bristol-Myers Squibb Co and AbbVie Inc (NYSE:ABBV), which have established pipelines, small and innovative stocks like Bicycle Therapeutics plc (NASDAQ:BCYC) are high-risk, high-reward investments for beginner investors.

5. DENTSPLY SIRONA Inc. (NASDAQ:XRAY)

Number of Hedge Fund Holders: 28

Although it’s not a pure pharma play, Dentsply Sirona makes dental equipment and specializes in anesthetics, plaque and gum disease prevention (prophylaxis) and tooth polishers. The stock is down about 13% after Piper Sandler analyst Jason Bednar downgraded Dentsply Sirona to Neutral from Overweight with a price target of $46, down from $71. The analyst highlighted the weak Q1 results and the sudden departure of CEO Don Casey for the downgrade.

4. Checkmate Pharmaceuticals, Inc. (NASDAQ:CMPI)

Number of Hedge Fund Holders: 3

Checkmate Pharmaceuticals Inc (NASDAQ:CMPI) is developing a new approach to cancer immunotherapy. It’s focusing on CpG oligonucleotides to discover and develop immunotherapies designed to increase the efficacy of existing immunotherapies.

BTIG analyst Kaveri Pohlman recently downgraded Checkmate Pharmaceuticals to Neutral from Buy without a price target after the company agreed to be acquired by Regeneron (REGN) for $10.50 per share in cash.

3. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS)

Number of Hedge Fund Holders: 26

Apellis Pharmaceuticals is an early-stage biotechnology company that focuses on chronic inflammatory and lung diseases. Roth Capital analyst Elemer Piros recently downgraded Apellis to Sell from Neutral with an unchanged $40 price target. The analyst noted Apellis Pharmaceuticals’ recent announcement of 18-month data from two phase 3 trials of pegcetacoplan. The analyst cited “mixed” nature of the pivotal trials and “significant appreciation” of the stock and uncertainty around the future for the downgrade.

2. Repare Therapeutics Inc. (NASDAQ:RPTX)

Number of Hedge Fund Holders: 14

Repare Therapeutics Inc (NASDAQ: RPTX) is a Canada-based precision oncology company. Stifel analyst Benjamin Burnett downgraded Repare Therapeutics to Hold from Buy with a price target of $11, down from $45. The analyst is not much confident about the combination of RP-3500 and PARP inhibitors.

1. Sabra Health Care REIT, Inc. (NASDAQ:SBRA)

Number of Hedge Fund Holders: 18

Not a pure pharmaceutical stock per se, Sabra is a leading healthcare REIT that invests in skilled nursing, senior housing and behavioral health facilities. Barclays recently downgraded Sabra Health Care to Equal Weight from Overweight with a price target of $14, down from $16. The firm’s analyst Steve Valiquette thinks that skilled nursing facility overhangs are continuing to increase. The company also has lower than average rent coverage ratios according to the analyst.

For a look at some other interesting stocks that could make good additions to your own portfolio, check out 10 Best Dividend Stocks for College Students and 10 Best Biotech Stocks Under $5.

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