Debanjana Chatterjee, an analyst from JonesTrading, reiterated the Buy rating on Contineum Therapeutics, Inc. Class A. The associated price target was lowered to $22.00.
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Debanjana Chatterjee’s rating is based on the potential of Contineum Therapeutics’ PIPE-791 in treating idiopathic pulmonary fibrosis (IPF), which remains a core focus despite the recent trial results of PIPE-307 in relapsing-remitting multiple sclerosis (RRMS) not meeting expectations. The analyst emphasizes that the mechanism of action for PIPE-791 is considered the most derisked in IPF development, and it is believed to have best-in-class potential, suggesting that the market may be undervaluing this opportunity.
Additionally, while the recent trial setback for PIPE-307 in RRMS is noted, it does not impact its potential in the ongoing trial for major depressive disorder (MDD), as the pathways involved in these conditions differ. The company plans to further analyze the trial data and present findings at an upcoming medical meeting, which could provide additional insights into PIPE-307’s prospects. Consequently, the target price has been adjusted to $22, reflecting the removal of the RRMS opportunity, but the Buy rating is reiterated in anticipation of future developments.
Chatterjee covers the Healthcare sector, focusing on stocks such as Intellia Therapeutics, Opus Genetics, and KalVista Pharmaceuticals. According to TipRanks, Chatterjee has an average return of 31.8% and a 64.13% success rate on recommended stocks.