On Wednesday, B.Riley initiated coverage on Corbus Pharmaceuticals (NASDAQ:CRBP) with a Buy rating and a price target of $85.00. The firm's coverage is based on the potential of Corbus' developmental drug candidates, specifically CRB-913, a weight loss agent, and CRB-701, a drug showing promise in cervical cancer treatment.
The analyst from B.Riley highlighted the innovative approach of CRB-913, a CB1R inverse agonist, which targets peripheral tissues such as fat cells to combat obesity. The firm noted the historical concerns with CNS-related adverse events in first-generation drugs but expressed confidence that recent advancements could alleviate these issues and deliver significant weight loss results.
The firm also pointed to the upcoming data readout for Novo Nordisk (NYSE:NVO)'s INV-202, another CB1R inverse agonist, expected in the second half of 2024. The outcome of this study is seen as a potential validation for the optimism surrounding CRB-913's future.
In addition to CRB-913, Corbus' second candidate, CRB-701, a next-generation ADC targeting nectin-4, has demonstrated encouraging early clinical activity in cervical cancer. This development is anticipated to contribute further to the value of Corbus Pharmaceuticals' shares.
Despite Corbus Pharmaceuticals' shares already outperforming the XBI year-to-date, B.Riley suggests there could be over 75% upside in the next 12 months, particularly if Novo Nordisk's forthcoming data aligns with expectations. The firm advises investors to keep a close watch on these developments as they unfold.
In other recent news, Corbus Pharmaceuticals has seen significant developments, with Dr. Yong Ben, a board member, setting up a prearranged trading plan for the company's stock. This plan allows Dr. Ben to sell up to 10,607 shares of Corbus' common stock from September 2024 to September 2025.
In the same vein, the company has attracted interest from RBC (TSX:RY) Capital Markets and Oppenheimer due to its promising obesity treatment candidate, '913, and the potential of its antibody-drug conjugate '701. Both firms have maintained an Outperform rating on Corbus, reflecting their confidence in the company's growth prospects.
Corbus Pharmaceuticals' '701 and '913 assets have been the focal points of recent analyst notes. RBC Capital Markets has raised its price target for the company's shares, expressing optimism for the '913 obesity treatment candidate. Furthermore, Oppenheimer has increased its price target on Corbus Pharmaceuticals shares, following new patient data showing efficacy in treating ulcerative colitis and cervical cancer.
The '913 asset has gained attention due to its similarities to Novo Nordisk's INV-202, with positive results from the upcoming phase II study of INV-202 expected to provide supportive evidence for '913's prospects. On the other hand, '701 is anticipated to make significant strides in the treatment of multiple solid tumors, with analysts forecasting a $1 billion out-year combined sales potential.
InvestingPro Insights
Amidst the optimism shared by B.Riley on Corbus Pharmaceuticals' drug candidates, it's crucial to consider additional financial aspects that could influence the company's stock performance. Corbus has demonstrated a striking 721.3% six-month price total return, reflecting a large price uptick and signaling robust investor confidence. Furthermore, the company's liquid assets surpassing short-term obligations and holding more cash than debt contribute positively to its financial stability.
InvestingPro Tips suggest that while analysts have revised their earnings downwards for the upcoming period, and do not anticipate the company will be profitable this year, Corbus still offers a high return over the last year with a 446.86% one-year price total return. Additionally, the company's volatility in stock price movements could present opportunities for investors with an appetite for risk.
For those interested in a deeper dive into Corbus Pharmaceuticals' financial health and future prospects, InvestingPro provides a wealth of additional tips. Currently, there are 10 more InvestingPro Tips available, which could guide investors in making more informed decisions. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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