H.C. Wainwright Boosts Price Target on CymaBay Therapeutics Inc (CBAY)

CymaBay Therapeutics Inc (NASDAQ:CBAY) shares jumped nearly over 20% in Monday’s trading session, after the company announced positive interim results from its ongoing low-dose Phase 2 study of seladelpar in patients with primary biliary cholangitis (PBC), a life-threatening and life-limiting chronic cholestatic liver disease.

In reaction, H.C. Wainwright analyst Ed Arce reiterates a Buy rating on CymaBay shares, while boosting his price target to $12.00 (from $7.00), which implies an upside of 66% from current levels. (To watch Arce track record, click here).

Arce commented, “Notwithstanding all the usual caveats for inter-study comparisons, we view these results as favorable to those of Intercept Pharmaceutical’s Ocaliva 10mg, which achieved a mean ALP reduction of 24% at 12 weeks […] we believe it likely that seladelpar’s efficacy grows stronger over time. Recall that in its pivotal Phase 3 POISE study, Ocaliva 10mg improved its ALP reduction to 41%. Critically, this study of seladelpar revealed no safety signal with no Grade 2 or Grade 3 transaminase elevations. In fact, mean ALT levels decreased, which we believe demonstrates seladelpar’s anti-inflammatory mechanism. In addition, seladelpar continued to demonstrate improvements in metabolic parameters such as LDL-C (-14%), GGT and others, which we view as reflective of the drug’s overall anti-cholestatic effect.”

“With these results in hand, we affirm our Buy rating on increased confidence in the approvability and market potential of seladelpar, and increase our price target,” the analyst concluded.

As of this writing, the 4 analysts polled by TipRanks (in the past 12 months) rate CymaBay stock a Buy. With a return potential of 13%, the stock’s consensus target price stands at $8.13.


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