Capricor selloff brings buying opportunity, says H.C. Wainwright

H.C. Wainwright analyst Joseph Pantginis urges Capricor Therapeutics (CAPR) investors “to take a breath and resist over-interpreting the noise.” While the recent administrative leave of key FDA gene therapy personnel, including Dr. Nicole Verdun, and the FDA’s withdrawal of the panel meeting for deramiocel “may raise eyebrows, we see no indication at this point that these events are directly connected,” the analyst tells investors in a research note. The firm believes these moves may reflect broader shakeups at the agency, potentially related to issues like Elevidys, or the FDA’s recent comments on CAR-T manufacturing in China, rather than any specific stance on Capricor’s deramiocel. H.C. Wainwright believes deramiocel offers a “first-in-class therapeutic profile in Duchenne muscular dystrophy with strong clinical and manufacturing support.” It views last week’s share selloff as an overreaction and continues to see this as a buying opportunity ahead of the August 31 FDA action date. The analyst keeps a Buy rating on the shares with a $77 price target The stock closed Friday down 31% to $8.26.