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Investing.com - Celldex Therapeutics (NASDAQ:CLDX), a $1.6 billion market cap biotech company currently trading near $24, reported negative results from its barzolvolimab study in eosinophilic esophagitis (EoE), despite Cantor Fitzgerald maintaining its Overweight rating and $67.00 price target. According to InvestingPro analysis, the company maintains strong liquidity with cash exceeding debt levels.
The clinical trial results, released Tuesday, demonstrated that while barzolvolimab 300 mg Q4W significantly reduced esophageal mast cells compared to placebo (-36.0 vs. -2.7 cells per high power microscope field; p=
Cantor Fitzgerald analyst Kristen Kluska noted that Celldex had been "transparent that the role of mast cells in the pathogenesis of EoE was unclear, but that this hypothesis deserved further study," adding that the company "ran an efficient and well-designed study and received a clear (albeit a negative) answer."
Despite the negative outcome for EoE treatment, Cantor Fitzgerald highlighted potential positive implications from the data, particularly regarding the safety profile of barzolvolimab, which could support its development in other indications.
The research firm suggested the results could have "potential positive readthroughs for the safety of barzolvolimab overall, and potential future GI indications where mast cell could play a role," while concluding that the study clarified that "mast cells do not contribute to EoE symptomology."
In other recent news, Celldex Therapeutics has made several announcements that have caught the attention of investors. The company reported that its experimental drug, barzolvolimab, failed to improve clinical symptoms in a Phase 2 study for eosinophilic esophagitis (EoE), despite successfully depleting mast cells in patients. This development led to Canaccord Genuity lowering its price target for Celldex to $62, while maintaining a Buy rating. Similarly, H.C. Wainwright adjusted its price target to $42, citing the removal of EoE from projected indications and an adjustment to the share count. Wells Fargo (NYSE:WFC) also reduced its price target to $38, noting the trial’s failure as a key reason for the adjustment.
In contrast, Celldex received positive feedback from H.C. Wainwright, which maintained its $50 price target after the company presented 76-week data from a Phase 2 trial of barzolvolimab for chronic spontaneous urticaria. The data indicated continued benefits through 76 weeks, extending the improvements previously reported at 52 weeks. These developments highlight the mixed results Celldex has experienced with its barzolvolimab drug across different indications.
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