Ayala Pharmaceuticals downgraded to Sell from Buy at Roth Capital - InvestingChannel

Ayala Pharmaceuticals downgraded to Sell from Buy at Roth Capital

Roth Capital analyst Tony Butler double downgraded Ayala Pharmaceuticals (AYLA) to Sell from Buy with a price target of 55c, down from $14, after the company announced a merger agreement with Advaxis (ADXS). The benefit to shareholders from this merger “is unclear to us,” Butler tells investors in a research note. The analyst finds it unusual that the management team of the “junior party in the combined entity would be the successor management team.” Moreover, how the combined company is able to drive any clinical synergies has not been defined, he writes. Butler would like to see “more holistic accountability of the combination of these two companies.”

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