Cantor Fitzgerald continues to back Corvus Pharmaceuticals (NASDAQ:CRVS) with an Overweight rating after the company unveiled promising results from its Phase 1 cohort 4 study earlier this week. The pharmaceutical’s shares have exhibited exceptional momentum, climbing 217% over the last week to reach $25.52, narrowly trailing its 52-week highest mark of $26.22, as per InvestingPro figures.
Reflecting the newfound confidence, Cantor Fitzgerald has revised upward the estimated success probability for Corvus’s soquelitinib treatment in atopic dermatitis (AD), elevating it to 60% from a previous 30%. The firm has also refreshed its atopic dermatitis market forecast for soquelitinib, now anticipating that the drug may achieve a peak market penetration of 20%.
Accordingly, the updated market analysis forecasts potential peak sales of $4.4 billion for soquelitinib, with adjusted peak sales approximated at $2.7 billion. These optimistic projections align closely with the newly published Phase 1 cohort 4 data highlighting the treatment’s efficacy in AD patients.
Meanwhile, Corvus Pharmaceuticals has taken steps to bolster its capital position through an upsized public offering involving 7,900,677 shares priced at $22.15 each, aiming to raise around $175 million in gross proceeds. An additional 30-day option allows underwriters to acquire 1,185,101 shares at the same price.
Investor interest has been further piqued by notable increases in price targets from leading analysts. Jefferies notably raised its price target from $13.00 to $42.00, attributing the surge to encouraging clinical trial data on Corvus’s Alzheimer’s disease drug candidate. Complementarily, H.C. Wainwright boosted its target from $11.00 to $27.00, citing favorable Phase 1 results for soquelitinib in atopic dermatitis.
Additionally, Corvus announced a separate $150 million stock offering, though specific terms of this raise were not initially disclosed, contributing to growing market attention around the company’s financial strategies and therapeutic pipeline progress.
The convergence of strong clinical data, favorable analyst ratings, and active capital raising efforts has heightened focus among investors and market observers on Corvus Pharmaceuticals as it advances its drug candidates in both dermatology and neurological indications.