IonQ CRO Alameddine Rima sells $4.6m in shares
Investing.com - Stifel maintained its Buy rating and $29.00 price target on Contineum Therapeutics (NASDAQ:CTNM) stock despite a Phase 2 clinical trial failure in multiple sclerosis. The $29 target represents a 161% upside from the current price of $11.09, though InvestingPro data suggests the stock is currently trading above its Fair Value.
The company disclosed that its Phase 2 VISTA trial of PIPE-307, an M1R antagonist, in relapsing-remitting multiple sclerosis (RRMS) did not meet its prespecified primary or secondary endpoints. No significant change was observed in binocular 2.5% low-contrast letter acuity across treatment arms.
Despite the disappointing results, the drug demonstrated acceptable safety and tolerability profiles. Contineum plans to present complete data from the trial at a future medical meeting. The biotech firm, with a market capitalization of approximately $357 million, has shown remarkable market resilience with a 14.6% return over the past week.
Stifel noted that its Buy thesis remains largely predicated on Contineum’s LPA1R antagonist, PIPE-791, which is being developed for idiopathic pulmonary fibrosis (IPF). The company recently disclosed Phase 1b PET data in healthy volunteers and remains confident about advancing into Phase 2 testing with potential for a best-in-class profile.
A key catalyst for the space and Contineum shares will be the Phase 3 readout for Bristol Myers Squibb’s admilparant/BMS-278 in IPF expected in late 2026, which Stifel believes could validate the class and therapeutic area. InvestingPro data reveals that Contineum holds more cash than debt and maintains an exceptional current ratio of 29.07, providing strong financial flexibility as it advances its pipeline. Get access to the comprehensive Pro Research Report and 10+ additional ProTips for CTNM through an InvestingPro subscription.
In other recent news, Contineum Therapeutics announced that its Phase 2 VISTA trial for the multiple sclerosis drug PIPE-307 did not meet its primary or secondary efficacy endpoints. The trial results indicated that the drug did not show a significant change in binocular 2.5% low contrast letter acuity, although it was deemed safe and tolerable. Despite this setback, RBC Capital maintained its Outperform rating on Contineum Therapeutics, emphasizing the company’s focus on its idiopathic pulmonary fibrosis (IPF) program and the potential of PIPE-307 in relapsing-remitting multiple sclerosis. Leerink Partners also initiated coverage with an Outperform rating, highlighting the promising developments in Contineum’s IPF treatment approach. These ratings suggest that analysts see potential in Contineum’s pipeline despite the recent trial results. Both RBC Capital and Leerink Partners set price targets of $25.00 and $20.00, respectively, reflecting their confidence in the company’s future prospects. These developments underscore the ongoing interest and analysis from investment firms regarding Contineum’s drug pipeline and strategic direction.
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