NEW YORK (TheStreet) -- Jefferies upgraded PTC Therapeutics (PTCT) - Get Report stock to "hold" from "underperform" on Wednesday, but lowered its price target to $12 from $18.

The South Plainfield, NJ-based biopharmaceutical company received a "Refuse to File" letter from the FDA about its New Drug Application yesterday.

The letter was regarding its drug ataluren, which is used to treat Duchenne muscular dystrophy, a muscle disorder.

"After FDA's Refuse to File letter, we see slim chance of approval for ataluren in DMD in US; however, EU decision remains unclear. With few precedents, we see reasonable probability of EMA withdrawing marketed ataluren based on prior mixed panel voting results," Jefferies said in an analyst note.

The upgrade was due to priced-in valuation, the firm noted.

Shares of PTC Therapeutics are slipping 2.21% to $10.60 in pre-market trading on Wednesday.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.

This is driven by several weaknesses, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.

The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

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.

You can view the full analysis from the report here: PTCT

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