Corbus soars after analyst says buy ahead of data, eyes potential double
Clinical-stage drug developer Corbus Pharmaceuticals (CRBP) soared Wednesday after research firm Cantor Fitzgerald started coverage of the stock with a $17 price target -- more than double its $7 closing price on Tuesday -- on the firm's conviction in upcoming results for the company's anti-inflammatory therapy Resunab. CANTOR SEES MULTIPLE INFLECTION POINTS: Cantor Fitzgerald analyst Elemer Piros initiated coverage of Corbus with a Buy rating and $17 price target. Piros sees the inflammation and fibrosis researcher achieving three inflection points over the next year, beginning with data presentations in November on its lead candidate Resunab. In pre-clinical models, the drug showed an encouraging ability to restore the body's anti-inflammatory processes, and Corbus is set to unveil initial efficacy results in diffuse cutaneous systemic sclerosis in November, cystic fibrosis in January, and dermatomyositis in the second half of 2017. Piros also notes that Corbus has filed patents for an ultrapure formulation of Resunab that could extend patent protection until 2033. The analyst estimates a $3B combined market potential for the three orphan indications, and he models their risk-adjusted present value at more than $700M, yielding his $17 twelve-month price target. PRICE ACTION: Shares of Corbus Pharmaceuticals have soared 30% to $9.11. Year-to-date the stock, which closed at $1.61 per share on January 4, has advanced by about 450%.