NEW YORK (TheStreet) -- Shares of Alcobra (ADHD) were slipping in mid-afternoon trading on Friday after the FDAplaced a clinical hold on its new drug application, prompting a rating cut at Piper Jaffray today.
The firm lowered its rating on the stock to "neutral" from "overweight" and slashed its price target to $3 from $10, the Fly reports.
Piper cited the near-term increase in clinical risk and timeline uncertainty after the company's Metadoxine program for adults with ADHD was placed on full clinical hold by the FDA this week.
The Israel-based biopharmaceutical company received a verbal notice from the agency, but has not received written notice.
Alcobra said it will work with the FDA to resolve any issues with the study.
More than 1.22 million of the company's shares changed hands so far today vs. its average volume of 437,939 shares per day.