Soumit Roy, an analyst from JonesTrading, reiterated the Buy rating on CervoMed. The associated price target was raised to $20.00.
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Soumit Roy has given his Buy rating due to a combination of factors related to CervoMed’s recent clinical trial data and future prospects. The extended 32-week data from the RewinD-LB trial shows promising cognitive benefits of neflamapimod in patients with dementia with Lewy bodies, particularly those with lower ptau levels, which indicates a reduced risk of disease progression. This longer-term data has bolstered investor confidence, leading to an increase in the probability of success (POS) for the drug from 10% to 15%.
Additionally, the anticipated FDA meeting for the Phase 3 trial design in the fourth quarter of 2025 further supports the positive outlook for CervoMed. The company’s strategic focus on enrolling patients with specific ptau levels in the upcoming trial is expected to enhance the drug’s efficacy profile. These developments have prompted an increase in the price target from $15 to $20, reinforcing the Buy recommendation.