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On Monday, Chardan Capital Markets maintained its Buy rating and a $15.00 price target for CervoMed shares. The firm’s decision follows CervoMed’s release of its financial results for the first quarter of 2025, in which the company reported having $35.2 million in cash, cash equivalents, and marketable securities. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 11.11, while holding more cash than debt on its balance sheet. This financial position, bolstered by pending grant funds from the National Institute on Aging (NIA), is expected to support CervoMed’s operations into mid-2026. With a market capitalization of $78.85 million, CervoMed’s stock currently trades below its InvestingPro Fair Value, suggesting potential upside opportunity.
CervoMed has recently overcome a significant hurdle with its lead asset, neflamapimod, which is being developed for the treatment of dementia with Lewy Bodies (DLB). After initial setbacks in December 2024, where neflamapimod failed to meet primary or secondary endpoints in the RewinD-LB study, the company reported positive data from the Open-Label Extension (OLE) phase in March. The OLE phase findings indicated that the negative results were due to the use of expired capsules, not the drug’s efficacy.
Looking ahead, CervoMed has a series of milestones for neflamapimod. The company anticipates releasing 32-week results from the RewinD-LB OLE study in the second half of 2025, followed by initial safety, biomarker, and pharmacokinetic data from a Phase 2a study in the fourth quarter of 2025. Analyst targets range from $10 to $21 per share, reflecting varying degrees of confidence in these upcoming catalysts. Get deeper insights and access to 11 additional ProTips with an InvestingPro subscription. This study involves patients with mild-to-moderate DLB being treated with an 80 mg twice-daily dosing regimen.
The company’s roadmap includes plans to initiate a Phase 3 trial for neflamapimod in DLB by mid-2026. This step is contingent on a successful meeting with the Food and Drug Administration (FDA) and the availability of necessary funding. With these developments, CervoMed aims to advance its program and address the unmet medical needs within the DLB patient community.
In other recent news, CervoMed Inc. has been the subject of several analyst upgrades following positive developments in its clinical trials. Jones Trading upgraded CervoMed’s stock rating from Hold to Buy, with a new price target of $15, citing encouraging data from the company’s open label extension study for neflamapimod, a treatment for dementia with Lewy bodies (DLB). Similarly, Chardan Capital Markets lifted its rating to Buy, setting a $14 target, driven by favorable results from the RewinD-LB study, which showed significant improvements in patient outcomes. Brookline Capital Markets also upgraded the stock to Buy, with a $16 price target, noting the promising interim data from the RewinD-LB trial as a key factor. Additionally, Boral (OTC:BOALY) Capital raised its rating to Buy with a $10 target, following discussions with CervoMed’s management about trial outcomes and future plans. The company is actively addressing bioavailability issues identified in the trials, which could further enhance the drug’s efficacy. These recent developments have led to increased optimism among analysts about CervoMed’s potential in the treatment of DLB. As the company continues its clinical trials, upcoming data releases are expected to be closely watched by investors.
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