Shares of Corbus Pharmaceuticals are down about 5.7% in pre-market trading on Wednesday after reporting lower-than-expected 3Q results. The pharma giant posted a loss of $0.43 per share, which was larger than the loss of $0.41 per share expected by analysts and compared to the year-ago loss of $0.32.
3Q revenues of $1.23 million also missed the consensus estimates of $3.24 million and declined 52.5% year-over-year, due to “revenue recognized under the Cystic Fibrosis Program Related Investment Agreement,” the company said.
Corbus’ (CRBP) operating expenses increased by 27.2% year-over-year to $35.2 million in 3Q, primarily due to increased clinical trial costs. The company’s CEO Yuval Cohen said, “Our restructuring significantly improved our cash runway, so we can continue to work toward delivering a much-needed novel therapeutic option for patients while also giving us the resources to look at external assets that will be synergistic to our in-house capabilities.”
Cohen also added that “We expect our cash runway to be further extended with the cost savings from our plan to shorten the DETERMINE Phase 3 dermatomyositis study to 28 weeks from one year. This decision is driven by recent changes in the dermatomyositis competitive landscape and will accelerate topline data readout to the second quarter of 2021.” (See CRBP stock analysis on TipRanks).
Following the 3Q results, Oppenheimer analyst Leland Gershell maintained his Hold rating on the stock. Gershell said that “the recently announced corporate restructuring should extend cash runway to mid-2022.” Meanwhile, he also sees “balanced risk/reward heading into DM [dermatomyositis] top-line readout, which may come by 2Q21.”
Currently, the Street supports Gershell’s outlook and assigns a Hold analyst consensus. The average price target stands at $2.18 implying upside potential of about 78.7% to current levels. Shares have declined by about 77.7% year-to-date.
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