Replimune Stock Decline Continues Amid Analyst Downgrades and Regulatory Uncertainty

Replimune Group (REPL) shares extended their decline, falling nearly 7% on Friday following a brutal 40% drop the previous day. The biotech stock underperformed the broader market as the S&P 500 edged up 0.5%.

J.P. Morgan analyst Anupam Rama catalyzed the sell-off by downgrading Replimune from neutral to underweight, effectively issuing a sell recommendation. The analyst scrapped his $6 price target without providing a replacement, citing unresolved regulatory questions about the company's experimental melanoma treatment RP1.

FDA discussions about RP1's approval pathway yielded no clear resolution, leaving the drug's commercial future in doubt. While clinical data showed promise, Rama concluded accelerated approval appears unlikely in the current regulatory environment.

H.C. Wainwright's Raghuram Selvaraju maintained a neutral rating but didn't specify a price target, reflecting the broader uncertainty surrounding Replimune's pipeline. The consecutive analyst actions highlight growing skepticism about the company's near-term prospects.