Oct. 14 at 10:56 AM
RBC Capital reiterated
$CTNM Outperform/
$25
$BMY
RBC Capital said:
Though investors are frequently focused on CTNM's promising IPF drug'791, likely given validation around the target from BMY's developmental LPA1Rs in the indication, we expect increasing attention on their other mid-stage pipeline asset, M1 antagonist '307, as key POC data approach in relapsing remitting MS.
We had the opportunity to dive deeply into the program through a call with CTNM's team, coming out of which we continue to see solid rationale for '307's mechanism, some indirect clinical validation, and a broad trial design optimized to detect any potential signal - all of which could facilitate success.
Though the program is likely higher risk vs. their IPF and MDD studies, we believe demonstration of any disability reversal could be transformative and lead
to considerable stock upside, while downside risk is likely low given limited value attributed to the program.
