On Wednesday, Guggenheim reiterated its Buy rating and $90.00 price target for Celldex Therapeutics (NASDAQ:CLDX) shares, representing significant upside potential from the current price of $26.53. According to InvestingPro data, analyst targets range from $42 to $90, with a strong consensus Buy recommendation of 1.42 (where 1 is Strong Buy). The firm's analysts focused on recent preliminary results from a competitor's study, emphasizing Celldex's position in the chronic spontaneous urticaria (CSU) treatment market.
The study in question reported by JSPR (NC) involved the Phase Ib/IIa BEACON trial of briquilimab, a c-Kit monoclonal antibody, which showed promising results at a 240 mg single subcutaneous dose. All participants in this dose group achieved a complete response at Week 8, with a notable reduction in urticaria activity score.
Guggenheim analysts highlighted the comparable efficacy of Celldex's barzolvolimab, which demonstrated a 21 to 26 point reduction in the same score at Week 12. The 240 mg dose of briquilimab also led to the most durable reduction in urticaria activity from Week 2 to 8, as well as a rapid onset of effect from the first week. Notably, this dose was the only one to decrease serum tryptase levels significantly, although it was less robust compared to the over 95% reduction seen with barzolvolimab that lasted through 12 weeks.
The report also discussed safety concerns with briquilimab, such as cases of neutropenia and a single case of Grade 2 hypersensitivity that resulted in treatment discontinuation. While Celldex focuses on advancing its treatment, InvestingPro analysis shows the company maintains a strong financial position with more cash than debt and a healthy current ratio of 24.27, indicating robust liquidity to support its development programs.
Additionally, 10.8% of briquilimab-treated patients experienced hair color change, and 16.2% reported a change in taste, but no skin discoloration was observed up to 24 weeks. The analysts pointed out that they do not find briquilimab's safety profile superior to that of barzolvolimab.
In their comments, Guggenheim analysts shared concerns about the lack of a dose-dependent response in the study, as lower doses of briquilimab showed better efficacy than higher doses in terms of urticaria activity score reduction. They also noted that fluctuating scores within dosing intervals correlated with incomplete tryptase reduction.
Despite the active drug status of briquilimab, the analysts remarked that its development stage remains significantly behind that of Celldex, which is currently leading in the mast-cell space with an ongoing Phase III program. The additional data from the BEACON study has led Guggenheim to maintain its positive outlook on Celldex Therapeutics' stock, reaffirming the company's competitive edge in the market for CSU treatments.
Recent market performance supports this optimism, with InvestingPro data showing a significant 9.22% return over the last week. For deeper insights into Celldex's financial health, valuation metrics, and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 10+ additional ProTips and advanced financial metrics.
In other recent news, Celldex Therapeutics continues to make significant strides in its clinical trials. The company reported positive Phase 2 data for its drug barzolvolimab, demonstrating sustained efficacy and a well-tolerated safety profile in treating Chronic Spontaneous Urticaria (CSU) and Chronic Inducible Urticaria (CIndU). Analyst firms such as H.C. Wainwright, TD Cowen, and Citi have maintained their Buy ratings on Celldex, reflecting confidence in the company's clinical developments.
Stifel reiterated its favorable stance on Celldex, highlighting its potential as a leader in the mast cell disease space. The company's drug candidate Briquilimab is currently undergoing Phase 3 trials, with early management commentary suggesting no significant safety concerns. Goldman Sachs maintained a Neutral rating, focusing on the latest interim data from a competitor's study.
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