Analyst Jason McCarthy of Maxim Group maintained a Buy rating on Capricor Therapeutics, with a price target of $25.00.
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Jason McCarthy has given his Buy rating due to a combination of factors surrounding Capricor Therapeutics. Despite the recent setback with the complete response letter (CRL) for their Deramiocel cell therapy, McCarthy views this as a temporary issue. The CRL was unexpected, especially given the prior support from the FDA for the Biologics License Application based on the promising phase 2 HOPE-2 data. However, the upcoming phase 3 HOPE-3 trial results, expected in the third quarter of 2025, are anticipated to provide the necessary data to support a re-filing for approval.
Additionally, Capricor is in a strong financial position with $120 million in cash, providing them with a solid runway to continue their operations and address the FDA’s requirements. McCarthy believes that the regulatory challenges are part of a broader shift in the FDA’s approach, which, while causing some delays, ultimately aims to streamline drug development. Therefore, he maintains a positive outlook on Capricor’s ability to overcome these hurdles and advance their promising therapy for Duchenne muscular dystrophy cardiomyopathy.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $12.00 price target.