Positive Outlook on Contineum Therapeutics: Promising Pipeline and Strategic Collaborations Drive Buy Rating

Myles Minter, an analyst from William Blair, has initiated a new Buy rating on Contineum Therapeutics, Inc. Class A (CTNM).

Myles Minter has given his Buy rating due to a combination of factors related to Contineum Therapeutics’ promising pipeline and strategic positioning in the biotech space. The company is advancing PIPE-791, a CNS-penetrant LPAR1 antagonist, which is being developed for idiopathic pulmonary fibrosis (IPF), progressive multiple sclerosis (MS), and chronic pain. The upcoming Phase Ib trial data is anticipated to provide crucial insights for future studies, and the significant investment by large pharmaceutical companies in the LPAR1 pathway is seen as a de-risking factor.
Minter also highlights the competitive advantage PIPE-791 may have due to its clean safety profile compared to other treatments like Bristol Myers Squibb’s admilparant. Additionally, the potential market for new IPF treatments is substantial, as evidenced by the sales growth of Boehringer Ingelheim’s Ofev. Furthermore, Contineum’s collaboration with Johnson & Johnson on PIPE-307, an M1 muscarinic receptor antagonist, offers additional value through milestone and royalty opportunities, particularly with its potential in relapsing MS and major depressive disorder. These elements collectively underpin Minter’s positive outlook on Contineum Therapeutics.