Catabasis Pharmaceuticals (NASDAQ:CATB) investors endured a roller coaster ride in a just a few hours, after the drug maker shared results for Edasalonexent in Part B of its trial at the 69th American Academy of Neurology meeting. The shares opened at $2.00 this morning and are currently trading at $1.49, which represents a fall of nearly 26%. Edasalonexent, also called CAT-1004, is an oral medicine that could potentially reduce muscular damages in boys victim of Duchenne Muscular Dystrophy.
Wedbush analyst Liana Moussatos reiterates an Outperform rating with a price target of $4, which represents an upside close to 167% from where the shares last traded.
“With numerical improvements in all function-associated endpoints observed in Part B of the MoveDMD trial, we believe extended treatment with edasalonexent (CAT-1004) could result in a deepening of the response—a potential positive sign that could boost shares. We now look to Q3:17 (from Q2) for an interim look of the MoveDMD study at 24 weeks (Part C) as the next material catalyst,” points out the analyst.
Moreover, Moussatos emphasizes on the company’s and its collaborator’s, Sarepta Therapeutics, potential with their new findings. “Beyond its proposed anti-inflammatory effect, edasa may directly help dystrophin production, thus be additive when combined with exon-skipping technologies. We note, in a preclinical model, inhibition of NF-kB resulted in the downregulation of microRNAs shown to decrease dystrophin production; this effect was also observed in vitro in samples taken from Becker muscular dystrophy patients,” the analyst elaborates.
Looking ahead, Moussatos believes CATB is an attractive investment but waits for 24 weeks treatment future results. Catabasis Pharmaceuticals ended the year of 2016 with a cash and cash equivalents balance of $38.5 million, an amount that will finance the trials for Q1 of 2018.
According to TipRanks, a financial engine that measures and ranks analysts’ and bloggers’ performance, Liana Moussatos is ranked #437 out of #4571 analysts. Moussatos has a 43% success rate and generates an annual yield of 10.3%. However, when recommending CATB, the analyst earns a -47.4% average profit on the stock.
TipRanks analytics show CATB as a Moderate Buy. Based on 5 analysts polled by TipRanks in the last 3 months, 3 issued a Buy and 2 maintained a Hold. The 12-month average price target stands at $4.38, making a nearly 194% upside from where the stock is currently trading.