Read Why Did Jefferies Downgrade Gemini Therapeutics To Hold

Jefferies has cut Gemini Therapeutics Inc (NASDAQ:GMTX) to Hold as the Company explores alternatives.
The analyst Chris Howerton has also reduced the price target to $1.50, down from $23 after the Company announced a CEO transition and reprioritization.
He has reduced the odds of success of GEM103 to 0% in his model to arrive at his new price target, Howerton noted.
Yesterday, Gemini announced its plans to reduce its workforce by approximately 80% and is exploring strategic alternatives after halting GEM103 Phase 2a trials in GA and wet AMD trials in January.
This is the second reprioritization for Gemini in less than six months. In October, the Company shook things up to focus on late-stage plans for its eye disease drug. But that was short-lived, and the biotech has also begun evaluating strategic alternatives.
The latest layoffs will affect 24 employees. President and CEO Jason Meyenburg also departed, as Executive Chair Georges Gemayel assumes the vacant roles on an interim basis.
Gemini disclosed in an SEC filing that restructuring charges would land in the $1.6 million to $1.9 million range.
Price Action: GMTX shares are down 11.8% at $1.20 during the market session on the last check Tuesday.