H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating on Sernova today and set a price target of C$6.00.
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Joseph Pantginis has given his Buy rating due to a combination of factors that highlight Sernova’s promising advancements in its Cell Pouch system for type 1 diabetes (T1D) treatment. The recent research agreement with Eledon Pharmaceuticals to incorporate tegoprubart, an immunosuppressive agent, into Sernova’s ongoing Phase 1/2 clinical trial is a significant step. Tegoprubart is expected to enhance the safety and efficacy of the Cell Pouch system by potentially preventing transplant rejection without the severe side effects associated with current treatments like tacrolimus.
Additionally, the positive read-through from Vertex’s updated data on its T1D program, which shares a similar therapeutic strategy of cellular replacement, reinforces confidence in Sernova’s approach. Vertex’s results demonstrated durable insulin production and favorable safety profiles, which align with Sernova’s goals. Sernova’s differentiated delivery method, using a pre-vascularized Cell Pouch, is seen as a competitive advantage that may improve long-term islet survival and function. These factors collectively support the Buy rating, indicating optimism for Sernova’s future clinical success and market potential.