Citi Downgrade Sparks Retail Chatter On Prime Medicine Amid Cash Runway Uncertainty

Retail chatter for Prime Medicine spiked Monday following Citi's downgrade to 'Neutral' from 'Buy,' with the price target slashed to $1.50 from $10. 

According to Citi's research note, the shares were trading near cash, reflecting investor uncertainty over the company's path to value inflection.

Citi said that Prime Medicine's cash reserves will sustain operations only until mid-2026 despite recent efforts to cut costs and restructure operations.

However, management expects initial clinical data will become available for Wilson's Disease and Alpha-1 Antitrypsin Deficiency (AATD) in 2027.

Prime Medicine’s shares closed at $1.29 on Friday, up 4.88% or $0.06 for the day.

The company said it would restructure by making its Chronic Granulomatous Disease (CGD) programs a lower priority while cutting its workforce by about 25% to concentrate on the liver disease franchise and externally funded programs.

The firm maintains progress in its live studies that target two significant genetic liver conditions: Wilson's Disease and Alpha-1 Antitrypsin Deficiency (AATD).

It plans to file an investigational new drug (IND) application in the first half of 2026 and mid-2026, respectively. Initial clinical data for these programs are expected in 2027.

Prime Medicine also maintains its cystic fibrosis program, which is supported by the Cystic Fibrosis Foundation, and collaborates with Bristol Myers Squibb to develop Prime Edited CAR-T products in hematology, immunology, and oncology.

On Stocktwits, retail sentiment was ‘bullish’ amid ‘high’ message volume.

One user noted insider buying and a technical double bottom pattern, suggesting the stock could either become a complete write-off or achieve “legendary” success.

Meanwhile, another user highlighted the company's gene-editing technology and its long-term potential despite the lengthy clinical timelines.

The stock has declined 57% so far in 2025.

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