Corbus jumps over 10% after Oppenheimer starts with $28 price target

Shares of Corbus Pharmaceuticals are moving higher after Oppenheimer analyst Leland Gershell initiated coverage of the name with an Outperform rating and $28 price target. The stock in early trading is up 10%, or 69c, to $7.56. The next 12-24 months could be transformational for Corbus, as ongoing late-stage trials of lead oral cannabinoid receptor agonist lenabasum in three "rare, poorly met disorders" of chronic inflammation/fibrosis complete their enrollment and deliver top-line data, Gershell told investors last night in a research note. Results from the 350 patient Resolve-1 trial, expected in mid-2020, could enable lenabasum to address a ~920M market opportunity, contends the analyst. Further, lenabasum has demonstrated positive prior clinical data in dermatomyositis and cystic fibrosis as well, each of which offers $500M to $1B in sales potential, according to Gershell.