Jasper Therapeutics Gets Hit With Downgrades Over Faulty Batch Of Skin Allergy Drug; Retail Sees ‘Overreaction’

Jasper Therapeutics faced a wave of downgrades Monday after disclosing that a compromised drug product lot disrupted results in multiple cohorts of its Phase 1b/2a BEACON study evaluating briquilimab for chronic spontaneous urticaria (CSU), a skin allergy.

BMO Capital cut the stock to 'Market Perform' from 'Outperform' and slashed its price target to $4 from $15, citing uncertainty caused by manufacturing issues that made it “challenging to separate the signal from the noise.”

Cantor Fitzgerald also downgraded the shares to 'Neutral' from 'Overweight', saying the update “introduced uncertainty for clinical trial execution and development timelines.” 

The firm said it would wait for clarity on future Phase 2b regimens and timelines before re-engaging.

William Blair issued a similar downgrade to 'Market Perform' from 'Outperform', flagging a lack of clarity around funding and concerns over the inactive drug lot, which also led Jasper to halt briquilimab development in asthma. 

The company confirmed that the affected batch was used in all patients in its ETESIAN asthma study.

BTIG reduced its price target to $20 from $64 but maintained a 'Buy' rating, calling briquilimab “safe and active” with “compelling efficacy,” despite the paused asthma trial and delayed Phase 2b CSU start, now expected mid-2026.

H.C. Wainwright dropped its target to $20 from $40 and retained a 'Buy' rating, citing the “surprising update” on the affected cohorts. 

The research firm shifted U.S. launch estimates for CSU and chronic inducible urticaria to 2030 and 2031, respectively, and now models a $5 million capital raise.

Jasper said the affected cohorts — 240 mg Q8W and 240 mg loading dose plus 180 mg Q8W — showed little to no clinical response, with 10 of 13 patients dosed from the compromised batch. 

The company plans to replace the products for those patients and enroll 10–12 more across both cohorts. New data is expected in the fourth quarter.

Across other cohorts, briquilimab produced deep and durable disease control. 

In the 240 mg and 360 mg single-dose groups, 8 of 9 participants achieved a complete response, with strong reductions in UAS7 and tryptase levels. 

Results from the open-label extension study also showed promising efficacy.

Jasper is halting asthma and SCID development and may restructure to cut costs and extend its runway.

However, retail sentiment for Jasper Therapeutics on Stocktwits was ‘extremely bullish’ amid ‘extremely high’ message volume.

One user said Jasper looked oversold and predicted a move above $5, calling the reaction to the update an overreaction to 90% good news.

Another user compared the situation to Capricor Therapeutics , which dropped last month after reports that two key FDA officials overseeing the company’s cell therapy application were placed on administrative leave.

Jasper Therapeutics’ stock has declined 85.6% so far in 2025.

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