CervoMed Initiated With Buy Rating on Differentiated DLB Asset Neflamapimod and De-Risked Path to 2029 Launch

Ram Selvaraju, an analyst from H.C. Wainwright, reiterated the Buy rating on CervoMed. The associated price target remains the same with $25.00.

Ram Selvaraju has given his Buy rating due to a combination of factors linked to CervoMed’s lead drug candidate, neflamapimod, and the dementia with Lewy bodies (DLB) market. He views neflamapimod as a differentiated, oral inhibitor of p38 alpha kinase targeting a biologically validated pathway tied to neuronal function and alpha-synuclein accumulation. The DLB indication itself represents a sizable, underpenetrated opportunity, as it is a leading cause of dementia after Alzheimer’s disease yet lacks any approved disease-modifying treatments, leaving a substantial unmet medical need. Early clinical data, including statistically significant benefits on the CDR-sb functional scale and correlated reductions in neuroinflammatory biomarkers such as GFAP, support the therapeutic potential and de-risk the program in his view.
Furthermore, Selvaraju highlights CervoMed’s strategy to focus on earlier-stage DLB patients without Alzheimer’s co-pathology, which may maximize the likelihood of treatment benefit and strengthen pivotal trial outcomes. He also views positively the company’s alignment with the FDA on a single, global Phase 3 registration-directed study design in approximately 300 patients, supported by Fast Track designation that could accelerate review timelines. The planned trial’s robust endpoint structure and biomarker assessments, along with a clear development timeline toward potential top-line data in 2028 and possible launch in 2029, underpin his constructive stance. Finally, he sees strategic flexibility in either self-commercialization or partnering, given the concentrated prescriber base and high unmet need, which together support his reiterated Buy rating and $25 twelve-month price target.

In another report released on December 2, JonesTrading also maintained a Buy rating on the stock with a $20.00 price target.

Based on the recent corporate insider activity of 11 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 CRVO in relation to earlier this year.