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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.

A scientist examining a microchip and circuit board in a hi-tech lab.

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. 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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This article is originally published at Insider Monkey.