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On Thursday, Cantor Fitzgerald reaffirmed its positive stance on Capricor Therapeutics (NASDAQ:CAPR), maintaining an Overweight rating and a $30.00 price target. The endorsement comes as the company reported its fourth-quarter earnings for 2024 and provided updates during a subsequent call. According to InvestingPro data, analyst targets for CAPR range from $25 to $77, with the stock currently trading at $12.22. Capricor Therapeutics, a biotechnology firm, is currently in the spotlight as it anticipates a pivotal event later in the year: the Prescription Drug User Fee Act (PDUFA) decision on August 31 for its leading product candidate, deramiocel, a cell therapy designed for Duchenne muscular dystrophy (DMD) cardiomyopathy.
The financial health of Capricor was also a point of focus, with the company concluding 2024 with approximately $152 million in cash reserves. This financial position is expected to sustain the company’s operations into 2027. The stock has shown remarkable momentum, with InvestingPro data revealing a 142% surge over the past six months and a 78% gain over the last year. Get access to 10+ additional ProTips and comprehensive financial analysis with an InvestingPro subscription. The analyst from Cantor Fitzgerald highlighted the potential financial upside if deramiocel is approved, which includes a Priority Review Voucher (PRV), recently valued at around $150 million, in addition to $80 million in milestone payments contingent on U.S. regulatory approval from their partner, Nippon Shinyaku (NS).
The analyst’s commentary underscored a perceived undervaluation of Capricor’s stock, noting that the current market valuation of $556 million suggests only a 20-25% probability of deramiocel’s approval. This contrasts with Cantor Fitzgerald’s more optimistic internal estimate, which assesses the chances of approval at 70% in the United States. The strong analyst consensus, as indicated by InvestingPro’s Financial Health Score of 2.28 (FAIR), supports this positive outlook. Based on this assessment, the firm recommends purchasing Capricor shares leading up to the PDUFA date.
The upcoming PDUFA decision represents a significant milestone for Capricor and its stakeholders. Should the Food and Drug Administration (FDA) grant approval for deramiocel, it would not only provide a new treatment option for DMD cardiomyopathy but also potentially unlock substantial financial incentives for the company. For detailed insights into Capricor’s financial health and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro, covering this and 1,400+ other US equities.
In other recent news, Capricor Therapeutics Inc reported its fourth-quarter 2024 earnings, which exceeded expectations. The company posted a loss of $0.16 per share, slightly better than the projected loss of $0.17. Capricor’s revenue for the quarter was $11.1 million, significantly surpassing the forecasted $3.52 million. This strong revenue performance was attributed to effective cost management and strategic execution. Despite a net loss of $7.1 million, Capricor maintains a solid cash position with approximately $151.5 million, bolstered by a recent $10 million milestone payment. The company is actively pursuing advancements in its Duchenne Muscular Dystrophy treatment, with a potential FDA approval expected in late 2025. Additionally, Capricor is expanding its manufacturing capabilities to support increased patient treatment capacity. Analysts from firms such as Piper Sandler and Oppenheimer have shown interest in Capricor’s strategic moves, highlighting the company’s readiness for future growth.
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