Citi Downgrades Prime Medicine (PRME) to Neutral, Cuts PT to $1.50 Due to Market Uncertainty

On Tuesday, Citi downgraded Prime Medicine Inc. (NASDAQ:PRME) from a Buy to a Neutral rating while also significantly reducing its price target from $10 to $1.50. Citi said that this adjustment reflects that the company’s shares are trading near cash, which shows the market’s uncertainty on Prime Medicine’s path to potential value inflection.

Citi Downgrades Prime Medicine (PRME) to Neutral, Cuts PT to $1.50 Due to Market Uncertainty

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Despite implementing cost-cutting measures, which include a 25% workforce reduction and prioritizing its liver disease franchise & externally funded programs over Chronic Granulomatous Disease/CGD programs, Prime Medicine’s cash reserves are projected to support operations only into H1 2026. This timeline falls short of management’s guidance, which anticipates initial in-vivo clinical data for Wilson’s disease and Alpha-1 antitrypsin deficiency/AATD in 2027. The company also plans to file an investigational new drug/IND application for these programs in H1 2026 and mid-2026, respectively.

Prime Medicine is seeking business development deals to secure non-dilutive capital and extend its financial runway. It continues its cystic fibrosis program, supported by the Cystic Fibrosis Foundation, and collaborates with Bristol Myers Squibb on Prime Edited CAR-T products in hematology, immunology, and oncology. Prime Medicine Inc. (NASDAQ:PRME) is a biotech company that delivers genetic therapies to address the spectrum of diseases by deploying gene editing technology in the US.

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Disclosure: None. This article is originally published at Insider Monkey.