Analyst Kelly Shi from Jefferies maintained a Buy rating on Centessa Pharmaceuticals (CNTA – Research Report) and keeping the price target at $27.00.
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Kelly Shi has given his Buy rating due to a combination of factors that highlight Centessa Pharmaceuticals’ promising prospects. The company’s ORX750 drug demonstrates a potent and selective biochemical profile, offering dosing flexibility that has shown positive results in sleep-deprived healthy volunteers. This flexibility is a key differentiator within the orexin class, and management is optimistic about its potential efficacy in treating narcolepsy types 1 and 2 (NT1/NT2) and idiopathic hypersomnia (IH), with a significant market opportunity estimated at over $7.5 billion.
Additionally, Centessa’s management has emphasized the high unmet need in NT1/NT2/IH, particularly in NT2/IH, where awareness is expected to grow with the first market entrant. The company’s strong balance sheet, with $430 million in cash, supports the advancement of its orexin programs, including ORX142 and ORX489, which could add an additional $10 billion in high-prevalence excessive daytime sleepiness disorders. These factors, combined with the positive feedback from surveyed sleep doctors regarding manageable adverse effects, underpin Kelly Shi’s optimistic outlook on Centessa Pharmaceuticals.
Based on the recent corporate insider activity of 83 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CNTA in relation to earlier this year.