Rodman & Renshaw initiated coverage of Catalyst Biosciences (NASDAQ:CLIO) with a “buy” rating and a 12-month price target of $3.50. The stock closed at $1.25 on Wednesday.
Using its proprietary protease platform, Catalyst Biosciences is advancing its lead hemostasis programs for hemophilia A and B, as well as its anti- complement programs, which could be applicable across various other disorders, including delayed graft function in kidney transplantation and age-related macular degeneration, a chronic eye disease.
“In our view, Catalyst Biosciences represents a unique investment opportunity in the $10-billion hemophilia space, due to the long-acting efficacy of its coagulation factor variants that improve on existing commercialized products,” writes analyst Raghuram Selvaraju.
The company’s CB 813d, a Factor VIIa variant for the on-demand and prophylactic treatment of severe hemophilia A and B patients with and without inhibitors, may enter a Phase 2/3 pivotal study in early 2017, he added.
Catalyst’s second candidate, CB 2679d, is aimed at on-demand and prophylactic treatment of hemophilia B and may enter a Phase 1/2 trial later this year.
“We project that CB 813d and CB 2679d could enter the market in 2020,” Mr. Selvaraju said. “In our view, CB 813d and CB 2679d could grab substantial market share from older-generation drugs and compete with other long-acting variants.”
