Corvus Pharmaceuticals Eyes Expansion Of Blood Cancer Therapy but Resource Limitations Pose Challenge: Oppenheimer

Oppenheimer has initiated coverage on Corvus Pharmaceuticals Inc CRVS with an Outperform rating and a price target of $7.00.

Analysts Jeff Jones and Kyle Yang see relapsed/refractory peripheral T-cell lymphoma as a gateway indication for soquelitinib, with regulatory guidance on the pivotal plan in r/r PTCL anticipated this quarter, following a scheduled FDA meeting. 

Corvu plans to expand soquelitinib trials into multiple, larger oncology indications, including clear cell renal cell carcinoma (ccRCC), an indication 10x the size of r/rPTCL, and a trial that could begin in the coming months.

In May, Corvus Pharmaceuticals revealed updated data from the Phase 1/1b trial evaluating single-agent therapy with CPI-818 in patients with relapsed T cell lymphomas (TCL).

Two complete responses (CR), one nodal CR, and three partial responses were observed.

Targeting the adenosine pathway offers significant potential across various tumor types. CRVS has advanced two clinical programs focusing on A2Ar (ciforadenant) and CD73 (mupadolimab). Both candidates could work as standalone treatments and in tandem with immune checkpoint inhibitors. 

Clinical trials are underway for ciforadenant in initial renal cell carcinoma treatments, while mupadolimab is set to enter Phase 2, contingent on adequate resources.

The analyst expects the declared cash reserve of $37 million to fund operations until mid-2024. It also anticipates that 3Q regulatory guidance will act as a catalyst to strengthen the balance sheet and overcome resource constraints, thereby facilitating the progress of this compelling portfolio.

Price Action: CRVS shares are up 8.42% at $2.19 on the last check Friday.