HC Wainwright Bullish On Corbus Therapeutics' Cystic Fibrosis Opportunity

Corbus Pharmaceuticals Holdings Inc CRBP has Phase 3 trials ongoing for its lead compound lenabasum in systemic sclerosis and dermatomyositis, and Phase 2 trials for cystic fibrosis and systemic lupus erythematosus.

With cannabinoid receptor type 2 being a critical component of resolution following inflammation, there could be “significant readthrough from one indication to the next,” according to H.C. Wainwright.

The Analyst

Analyst Andrew Fein initiated coverage of Corbus Pharmaceuticals with a Buy rating and $24 price target. 

The Thesis

Although success in systemic sclerosis or dermatomyositis alone may be insufficient to lend upside to Corbus Pharmaceuticals’ shares, there is potential in lenabasum’s ability to address inflammation in cystic fibrosis, Fein said in the Wednesday initiation note. 

Cystic fibrosis patients experience chronic inflammation that results in a decline in lung function, and the disease is strongly associated with more frequent pulmonary exacerbations and morbidity.

While Vertex Pharmaceuticals Incorporated VRTX's triple therapies may make modulator therapy available for nearly 90 percent of those with a CF mutation, modulators of the cystic fibrosis transmembrane conductance regulator are unlikely to fully reverse the structural damage in CF patients, the analyst said. 

A need exists for anti-inflammatory therapy in the cystic fibrosis space, Fein said, adding that addressing the resolution phase could offer a new approach. Lenabasum provides "the most advanced agent to target resolution," he said. 

Price Action

Corbus Pharmaceuticals were trading higher by 5.13 percent at $5.53 at the time of publication Wednesday. 

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