Y-mAbs Therapeutics shares fall 42% following last week’s FDA advisory committee vote

Shares of Y-mAbs Therapeutics Inc. plunged 42.5% in premarket trading on Monday after several banks downgraded the company’s stock and a Food and Drug Administration advisory committee voted against approval of the company’s experimental treatment for neuroblastoma patients. The committee on Friday voted 16-0 that there wasn’t enough evidence to say that omburtamab improves overall survival. J.P. Morgan downgraded the stock to underweight from neutral, with analysts saying: “We do not think recent newsflow bodes well for investor confidence or for ascribing further pipeline value to follow-on indications which are mostly in their early innings of development.” Wedbush also downgraded the stock to neutral from outperform. Y-mAbs’ stock has tumbled 44.9% this year, while the broader S&P 500 is down 18.5%.

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