** Shares of Israel-based drug developer Galmed Pharmaceuticals GLMD.O down 5.5% to $1.38

** Maxim Group cuts rating from to "hold" from "buy," and removes PT

** Downgrading GLMD due to the lack of clarity on the path forward and strategic positioning - Maxim

** GLMD may also potentially require a capital raise to commence a clinical trial; under current market conditions, financing will likely be difficult and significantly dilutive, Maxim says

** Up to last close, GLMD had fallen over 52% YTD

(Reporting by Juby Babu in Mexico City)

((Juby.Babu@thomsonreuters.com;))