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Tuesday, Piper Sandler reaffirmed its Overweight rating on Centessa Pharmaceuticals (NASDAQ:CNTA) stock with a steadfast $38.00 price target, representing significant upside from the current price of $12.26. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $26 to $38, despite the stock’s volatile nature. The endorsement comes as the firm hosted a discussion with a leading sleep medicine specialist to delve into the potential of orexin 2 receptor (OX2R) agonist treatments for narcolepsy and idiopathic hypersomnia.
The specialist provided insights on the treatment landscape for narcolepsy type 1 (NT1), narcolepsy type 2 (NT2), and idiopathic hypersomnia (IH), diseases that Centessa’s ORX750 aims to address. With upcoming data readouts anticipated later in the year, Piper Sandler’s interest in the company remains high. Key data from the Phase 2 CRYSTAL-1 study of ORX750 in NT1, NT2, and IH are expected in 2025. The company’s strong financial position, with more cash than debt on its balance sheet and a solid Financial Health Score of 2.05 according to InvestingPro, provides runway for these crucial clinical developments.
The discussion also touched on forthcoming data from other pharmaceutical companies in the same drug class. This includes Phase 2 data for ALKS 2680 in NT1, expected in early third quarter of 2025, with subsequent data for NT2 later in the fall. Additionally, Phase 2 data from Takeda’s (not covered by Piper Sandler) oveporexton in NT1 are anticipated in the first half of 2025, with a regulatory submission planned for the second half of the year.
Centessa’s focus on OX2R agonists positions it within a competitive landscape of treatments for sleep disorders. The company’s pursuit of solutions for these conditions is closely watched, with significant milestones ahead that could influence the stock’s performance.
The reiteration of the Overweight rating and price target reflects Piper Sandler’s confidence in Centessa’s pipeline and its potential impact on the treatment of sleep disorders. Investors and industry watchers alike await the upcoming data readouts that could validate the firm’s bullish stance on Centessa Pharmaceuticals.
In other recent news, Centessa Pharmaceuticals has been the focus of several analyst updates and investor discussions. Piper Sandler initiated coverage on the company with an Overweight rating and a price target of $38.00, citing the potential of Centessa’s orexin receptor 2 (OX2R) agonist franchise, particularly its lead candidate ORX750, which is in Phase 2a trials for narcolepsy and idiopathic hypersomnia. BMO Capital Markets maintained its Outperform rating with a $35.00 price target, highlighting the positive fourth quarter 2024 earnings per share and the anticipated Phase II results for ORX750 expected in 2025. The firm estimates an 80% probability of success for these trials, underscoring the drug’s potential to improve wakefulness without visual disturbances.
TD Cowen also reiterated a Buy rating on Centessa, expressing optimism about the upcoming Phase IIa results for ORX750 and its competitive efficacy and tolerability profile. The analysts noted the potential for expanding the use of ORX142 and ORX489 in treating other conditions related to excessive daytime sleepiness. The financial community is closely monitoring Centessa’s progress, as the success of its OX2R agonist portfolio could represent a significant upside for the company. These developments, along with the management’s confidence in their therapeutic pipeline, have kept investor interest high.
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