Roth Capital Partners launched coverage of Corvus Pharmaceuticals (NASDAQ:CRVS) with a “buy” rating and price target of $6. The stock closed at $3.90 on May 28.
Corvus is focused on developing compounds that improve the immune response towards cancer. One mechanism of tumor-induced immune suppression is the generation of adenosine by tumor cells. The generation of adenosine by CD73 on the surface of tumor cells suppresses antitumor immune responses through the activation of A2a receptors on immune cells.
Analyst Tony Butler writes that Corvus is testing whether inhibitors of A2a or CD73, with and without other checkpoints, such as an anti-PDL-1 from Roche, improve the overall immune response and induce tumor killing.
Corvus currently has three programs focusing on the adenosine pathway to modulate immune response, particularly with respect to altering the tumor microenvironment.
Mr. Butler said Corvus’ lead product candidate, CPI-444, is an adenosine A2a receptor antagonist that prevents adenosine signaling. A Phase 1b/2 study evaluating CPI-444 plus atezolizumab in renal cell carcinoma patients that have failed PD(L)1 antibodies and TKI, is currently enrolling. Enrollment also is ongoing in a Phase 1b/2 study being conducted by Genentech, evaluating CPI-444 in non-small cell lung cancer.
Corvus’ second product candidate is a CD73 inhibitor (CPI-006), which blocks the production of adenosine. Continued enrollment is ongoing in a Phase 1/1b study evaluating CPI-006 as a monotherapy and in combination with CPI-444 or pembrolizumab.
Initiation of enrollment is also expected for a Phase 1 study evaluating Corvus’ third program (CPI-818).
