China approves Corvus partner’s IND for atopic dermatitis drug trial

Published 25/06/2025, 13:14
China approves Corvus partner’s IND for atopic dermatitis drug trial

SOUTH SAN FRANCISCO - Angel Pharmaceuticals Ltd., Corvus Pharmaceuticals’ (NASDAQ:CRVS) partner in China, has received approval from China’s National Medical Products Administration to begin a Phase 1b/2 clinical trial of soquelitinib for moderate-to-severe atopic dermatitis patients in China. The news comes as Corvus, currently valued at $334.68 million, has seen its stock surge over 10% in the past week and an impressive 143% over the last year, according to InvestingPro data.

The trial will evaluate soquelitinib over a 12-week treatment period, including a 400 mg once-daily dose. Patient enrollment is expected to begin in the third quarter of 2025, with data from the Phase 1b portion anticipated in 2026.

The Phase 1b portion will be randomized, double-blinded and placebo-controlled, enrolling patients across two cohorts testing different dosing regimens. The Phase 2 trial will focus on two doses selected based on Phase 1b results.

Dr. Yuling Shi, professor of dermatology and Vice President of Shanghai Skin Disease Hospital at Tongji University School of Medicine, will serve as principal investigator.

Angel Pharmaceuticals, which licensed the rights from Corvus to develop soquelitinib in greater China, is responsible for all development expenses in the region. Corvus co-founded Angel Pharma and maintains approximately 49.7% ownership interest. InvestingPro analysis shows Corvus maintains a strong financial position with a healthy current ratio of 4.9, indicating robust liquidity to fund its development programs.

In the U.S., Corvus continues patient enrollment in its soquelitinib Phase 1 extension cohort for atopic dermatitis and plans to initiate a Phase 2 trial by year-end.

Soquelitinib is an investigational oral small molecule drug that selectively inhibits ITK (interleukin-2-inducible T-cell kinase).

This information is based on a press release statement from Corvus Pharmaceuticals. While analysts don’t expect profitability this year, the company holds more cash than debt on its balance sheet, positioning it well for continued development. For deeper insights into Corvus’s financial health and growth prospects, including 8 additional ProTips and comprehensive analysis, visit InvestingPro.

In other recent news, Corvus Pharmaceuticals has reported interim data from its Phase 1 clinical trial for soquelitinib, a drug aimed at treating moderate to severe atopic dermatitis. The data revealed that patients in cohort 3, who received a higher dose of the medication, experienced a significant improvement in symptoms. This trial, which is randomized and placebo-controlled, demonstrated a 64.8% reduction in the Eczema Area and Severity Index (EASI) score for cohort 3. In related developments, Mizuho Securities adjusted its price target for Corvus Pharmaceuticals, lowering it from $12.00 to $11.00, while maintaining an Outperform rating, citing the promising clinical data for soquelitinib.

Additionally, Oppenheimer analyst Jeff Jones maintained an Outperform rating on Corvus Pharmaceuticals and increased the price target from $2 to $17, reflecting optimism about the company’s clinical-stage programs. Cantor Fitzgerald also reiterated an Overweight rating, underscoring investor enthusiasm for the company’s novel oral treatment approach in atopic dermatitis. Despite missing its Q1 2025 earnings forecast by a narrow margin, Corvus Pharmaceuticals reported a net income of $15.2 million, a significant turnaround from a net loss the previous year. The company’s strong financial position is further bolstered by a cash runway extended into Q4 2026, thanks to a recent warrant exercise. These developments indicate a positive sentiment among investors and analysts regarding Corvus Pharmaceuticals’ future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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