Capricor Therapeutics initiated with a Buy at B. Riley

B. Riley initiated coverage of Capricor Therapeutics (CAPR) with a Buy rating and $21 price target The firm believes deramiocel could become the first therapy for Duchenne muscular dystrophy-cardiomyopathy, addressing the leading cause of mortality in DMD. The Phase II data demonstrated clinically meaningful preservation of cardiac function through four years, including left ventricular ejection fraction improvement of 1.9% and 1.2% at 24 and 36 months, the analyst tells investors in a research note. Riley believes investors “may have over-weighted” regulatory risk related to FDA disruption and the on-again, off-again panel meeting “that may reflect the emergence of a more flexible, rare disease-focused agency that benefits deramiocel as the only safe and potential disease-modifying option.”