Buy Rating for Contineum Therapeutics’ PIPE-791: Promising Phase 1b Results and Competitive Edge

JonesTrading analyst Debanjana Chatterjee has maintained their bullish stance on CTNM stock, giving a Buy rating today.

Debanjana Chatterjee’s rating is based on the promising results from Contineum Therapeutics’ Phase 1b PET study of PIPE-791, which demonstrated high receptor occupancy in both healthy volunteers and patients with progressive multiple sclerosis. The study’s findings suggest that the planned Phase 2 doses are likely to achieve over 90% receptor coverage, which is crucial for therapeutic efficacy. Additionally, the safety profile of PIPE-791 was consistent with previous studies, showing no new adverse effects.
Chatterjee also highlights the competitive advantage of PIPE-791 over similar treatments, such as BMS’ admilparant, which failed to achieve significant receptor coverage at tested doses. The slow binding nature of PIPE-791 helps avoid hypotension, a side effect observed with other treatments. Furthermore, while lung receptor occupancy data was not measurable, the strong correlation between brain and lung receptor occupancy in preclinical models supports the drug’s potential efficacy. These factors collectively reinforce the drug’s best-in-class potential, justifying the Buy rating.

Chatterjee covers the Healthcare sector, focusing on stocks such as Opus Genetics, Theravance Biopharma, and KalVista Pharmaceuticals. According to TipRanks, Chatterjee has an average return of 36.8% and a 77.50% success rate on recommended stocks.