H.C. Wainwright initiated coverage of Corbus Pharmaceuticals Holdings (NASDAQ:CRBP) with a “buy” rating and $24 price target. The stock closed at $5.26 on Dec. 24.
The company’s lead compound, lenabasum, is a synthetic, oral, cannabinoid receptor type 2 (CB2) agonist. Corbus is evaluating lenabasum in systemic sclerosis (SSc), cystic fibrosis (CF), dermatomyositis (DM), and systemic lupus erythematosus (SLE).
The company currently has Phase 3 trials ongoing for SSc and DM, as well as Phase 2 trials for CF and SLE.
“With the thesis that CB2 is a critical component of resolution [of] inflammation, we expect that there may be significant read-through from one indication to the next,” writes analyst Andrew Fein.
“We choose to focus on the ability of lenabasum to address inflammation in CF, though we note that success in either SSc or DM alone is sufficient to drive upside to current levels,” he added.