On Monday, Piper Sandler initiated coverage on Corbus Pharmaceuticals (NASDAQ:CRBP), a $217 million market cap biotech company, with an Overweight rating and a price target of $35.00. The stock has shown remarkable momentum with a 195% gain year-to-date, according to InvestingPro data. The firm's optimism is rooted in the potential of CRBP's Nectin-4 ADC, CRB-701, which is being developed for the treatment of solid tumors, including cervical cancer.
The drug's innovative linker-payload technology may result in a better safety profile while maintaining promising efficacy. InvestingPro analysis shows the company maintains a strong financial position with more cash than debt and a healthy current ratio of 13.84x, providing runway for its development programs.
CRB-701 has already shown positive results in a Phase 1 trial conducted in China, where patients with urothelial cancer exhibited an objective response rate (ORR) of 44%. Similarly, the ORR for cervical cancer stood at 43%. These findings have paved the way for a Phase 1 trial in the United States, with data expected to be released in the first quarter of 2025. The upcoming trial will focus on urothelial and cervical cancers, aiming to reaffirm the results from China.
Corbus Pharmaceuticals has set its sights on cervical cancer as the lead indication for CRB-701's pathway to approval. The drug has also demonstrated proof of concept in triple-negative breast cancer (TNBC), ovarian cancer, and non-small cell lung cancer (NSCLC). Piper Sandler's projections include risk-adjusted peak sales for CRB-701 of approximately $555 million.
Notably, analyst consensus is highly bullish, with price targets ranging from $40 to $75, suggesting significant upside potential. For deeper insights into CRBP's valuation and growth prospects, investors can access comprehensive analysis through InvestingPro's detailed research reports.
In addition to CRB-701, Corbus is also developing CRB-913, a potential treatment for obesity. This drug is expected to capture a portion of the obesity market, particularly targeting the maintenance phase and patients who stop GLP-1 therapy due to tolerability issues. CRB-913, which may work well in combination with incretins, is anticipated to have a favorable central nervous system (CNS) safety profile due to its lower brain exposure. Phase 1 trials for CRB-913 are slated to begin in the first quarter of 2025, with results anticipated in the second half of the same year.
In other recent news, Corbus Pharmaceuticals reported robust third-quarter results, with an ending cash total of $159 million, projected to fund operations into the second half of 2027. The company's ADC program, focusing on the drug CRB-701, is expected to provide a data update in the first quarter of 2025.
Additionally, Corbus has completed patient enrollment for the dose escalation trial of CRB-701, with data from at least 12 patients expected to be presented early next year.
In other developments, Anne Altmeyer Ph.D., a board member, has initiated a prearranged trading plan for her shares in the company. Under the Rule 10b5-1 plan, Dr. Altmeyer has scheduled the sale of up to 2,452 shares of Corbus's common stock. This trading plan follows standard financial practices for individuals with insider access to potentially market-moving information.
In recent analyst notes, Oppenheimer has maintained its Outperform rating and $60.00 price target for Corbus, as B.Riley reduced its price target to $40 from $85, maintaining a Buy rating. Mizuho (NYSE:MFG) Securities also maintained its Outperform rating, with a price target set at $74.00. These ratings reflect confidence in Corbus's advanced asset, CRB-701.
Corbus Pharmaceuticals is also progressing with its clinical trials, notably with its drug, CRB-913, which targets CB1r and is said to be approximately ten times more CNS restricted than competitor Novo Nordisk (NYSE:NVO)'s monlunabant. An Investigational New Drug application for CRB-913 is expected to be filed by Corbus Pharmaceuticals later this year.
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