Craig-Hallum bullish on Eledon Pharmaceuticals, initiates with a Buy

As previously reported, Craig-Hallum initiated coverage of Eledon Pharmaceuticals (ELDN) with a Buy rating and $12 price target Eledon is developing tegoprubart to address the need for a new SOC in immunosuppression for kidney transplant patients, as current therapies cause kidney damage as a side effect, contributing to kidney graft failure after 10-15 years. The firm notes Tegoprubart’s advantages support its potential to be the new SOC for kidney transplantation, which is a multi-billion dollar market opportunity, and it has broad utility in other organ transplant settings. Craig-Hallum sees opportunity for significant share appreciation with upcoming data catalysts in kidney transplantation including a Phase Ib update at WTC on August 6th, with readthrough to the Phase II topline readout in November, which represents a major de-risking event.