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Investing.com - Stifel maintained its Buy rating and $58.00 price target on Celldex Therapeutics (NASDAQ:CLDX), currently trading at $24.02, despite the company’s drug candidate failing in an eosinophilic esophagitis (EoE) trial. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet.
Barzolvolimab did not demonstrate clinical efficacy in EoE despite achieving clear mast cell depletion, according to Stifel analyst commentary. As a result, Celldex will not pursue further development of the drug for this specific indication.
The investment firm emphasized that the primary focus for Celldex remains its progress in chronic spontaneous urticaria (CSU), particularly the ongoing Phase 3 program involving more than 1,800 patients. Barzolvolimab has shown differentiated efficacy in this area as a first-in-class asset.
Stifel expressed confidence in the Phase 3 CSU trials, noting that the addition of a loading dose from the Phase 2 trial increases probability of success. The firm also highlighted favorable safety data, with no reports of anaphylaxis or hypersensitivity in the higher-dose EoE Phase 2 trial.
Celldex expects to complete enrollment in the CSU Phase 3 trial in 2026, while Phase 2 studies in Atopic Dermatitis and Prurigo Nodularis continue to progress, according to the research note.
In other recent news, Celldex Therapeutics announced disappointing results from its Phase 2 study of barzolvolimab for eosinophilic esophagitis (EoE). While the drug significantly reduced mast cells in the esophagus, it did not lead to clinical improvement in symptoms, prompting the company to discontinue the EoE program. Following this development, several analyst firms adjusted their price targets for Celldex. Canaccord Genuity lowered its target from $64.00 to $62.00, maintaining a Buy rating. H.C. Wainwright also reduced its target from $50.00 to $42.00, citing the removal of EoE from the drug’s projected indications and adjustments to the share count. Wells Fargo (NYSE:WFC) cut its price target to $38.00 from $44.00 while maintaining an Overweight rating. Despite these setbacks, Cantor Fitzgerald maintained its Overweight rating with a $67.00 price target, showing some continued optimism for the company. These developments mark significant shifts in analyst expectations for Celldex.
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