NEW YORK (TheStreet) -- Chimerix (CMRX) - Get Report stock is rebounding by 6.65% to $7.06 on heavy volume on Tuesday from Monday's sharp decline, despite a downgrade to "neutral" from "overweight" at JPMorgan yesterday afternoon.

The firm slashed its price target to $15 from $65 on the stock.

Shares of the biopharmaceutical company closed down more than 81% yesterday after a Phase 3 trail of an antiviral used to prevent infections in blood and marrow transplants fell short of Chimerix's expectations.

The antiviral brincidofovir "unexpectedly and disappointingly" was unable to prevent CMV infections during the 24 week period after transplant, JPMorgan said in a note. CMV is a primary cause of viral infections in transplant recipients.

Rates of graft-versus-host disease (GVHD) seemingly increased when brincidofovir was used, which resulted in a "non-statistically significant" increase in mortality compared to subjects given a placebo, the firm pointed out.

In light of the drug's uncertainty, JPMorgan anticipates that investors will assign "little credit" to brincidofovir, and there are no "near-term events that could substantially reverse this view."

About 2.23 million shares of Chimerix have been traded so far today, well above the company's average trading volume of roughly 1.19 million shares per day.

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate CHIMERIX INC as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • CMRX's very impressive revenue growth greatly exceeded the industry average of 13.4%. Since the same quarter one year prior, revenues leaped by 91.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • CMRX's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 10.50, which clearly demonstrates the ability to cover short-term cash needs.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Biotechnology industry and the overall market, CHIMERIX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$24.93 million or 117.74% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • You can view the full analysis from the report here: CMRX