Leerink ups Centessa PT to $11 from $6 on pipeline prospects


Leerink Partners raised its price target for Centessa Pharmaceuticals (NASDAQ:CNTA) to $11 from $6, and reiterated an “outperform” rating, citing an improved outlook for its pipeline. The stock closed at $6.62 on Aug. 14.

Analyst David Risinger writes that he reiterating his OP rating ahead of potential positive pipeline catalysts for Centessa’s orexin (narcolepsy) program in October 2023 and initial LockBody (oncology) candidate, LB101, Phase 1/2a updates in late 2023 or 2024.

Following second quarter results and the company’s nomination of a second LockBody candidate, LB206, for solid tumor applications, along with promising preclinical mouse data, Mr. Risinger said he raised his discounted cash flow-derived PT to $11 from $6.

Mr. Risinger said ORX750 for narcolepsy type 1 is undergoing IND-enabling studies, and “management views its profile as best in class.” The company plans to present preclinical data at the World Sleep Congress on Oct. 20-25, 2023.