** Shares of drug developer 4D Molecular Therapeutics FDMT.O fall 13.2% to $4.79

** Brokerage BMO Capital downgrades rating to "market perform" from "outperform;" cuts PT to $15 from $40

** New PT represents a 171.4% upside to the stock's last close

** FDMT is testing its gene therapy, 4D-150, for the treatment of diabetic macular edema $(DME.AU)$, a condition where fluid builds up in the central part of the retina due to damaged blood vessels

** Brokerage says "4D-150 durability in DME appears limited" with only 56% of patients being injection-free at 32 weeks

** Brokerage believes "upcoming 4D-150 readouts are more likely to drive downside than upside" due to lower injection-free rates and safety risks with longer follow-up

** Brokerage notes wAMD/DME competitive landscape is increasingly crowded, which may pressure the FDMT's thesis

** 8 of 11 brokerages rate the stock "buy" or higher, 2 "hold" and 1 "sell;" their median PT is $39 — LSEG

** FDMT fell 73.6% in 2024

(Reporting by Kamal Choudhury in Bengaluru)

((Kamal.Choudhury@thomsonreuters.com))