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Tuesday, Capricor Therapeutics shares received a positive outlook from Roth/MKM as the firm initiated coverage with a Buy rating and a 12-month price target of $31.00. The target aligns with the broader analyst consensus, as InvestingPro data shows price targets ranging from $25 to $77. The research firm’s confidence is rooted in a Discounted Cash Flow (DCF) analysis and the potential of Capricor’s product, deramiocel™, to enhance cardiac and skeletal muscle function in patients with Duchenne muscular dystrophy (DMD) suffering from cardiomyopathy.
Roth/MKM anticipates a robust market introduction for deramiocel™ in the United States, forecasting a launch in the fourth quarter of 2025 through a partnership with NS Pharma. Sales projections are estimated to reach approximately $1 billion by 2030 and $3.3 billion by 2038, with Capricor expected to earn a 25% net royalty on these revenues. The company’s strong financial position is evidenced by its healthy current ratio of 6.55 and minimal debt levels, according to InvestingPro data.
The analyst’s report also points to significant financial incentives for Capricor upon the approval of deramiocel™. These include the possibility of receiving a Priority Review Voucher (PRV), valued at around $150 million, and an $80 million milestone payment, which could provide additional financial benefits to the company.
Capricor Therapeutics, listed on (NASDAQ:CAPR), is strategically positioned to capitalize on these developments as it advances toward the commercialization of its promising treatment for DMD-related cardiomyopathy. The company’s progress and potential revenue streams have clearly caught the attention of Roth/MKM, leading to the initiation of coverage with a favorable Buy rating and an ambitious price target.
In other recent news, Capricor Therapeutics reported a wider-than-expected loss for the first quarter of 2025. The company’s earnings per share stood at -$0.53, missing the forecasted -$0.32, while revenue plummeted to zero from $4.9 million in the same quarter last year. Despite these financial setbacks, Capricor’s stock rose in after-hours trading, reflecting investor optimism about its strategic direction and potential FDA approval for its DMD cardiomyopathy therapy. The company maintains a strong cash position of $144.8 million, providing a buffer against financial pressures. Capricor is preparing for an FDA Advisory Committee meeting, with potential approval for its DMD therapy expected later in 2025. The company is also exploring market opportunities in Europe and Japan and plans to expand its manufacturing capabilities by mid-to-late 2026. Analysts from firms like Piper Sandler have shown interest in the company’s FDA review process and its preparedness for potential shifts in therapy focus. Capricor continues to emphasize its commitment to advancing its DMD therapy, with CEO Linda Marban highlighting the therapy’s safety and effectiveness.
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