Wedbush Reiterates Outperform, $17 PT on Catabasis (CATB) on Sarepta Collaboration
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Wedbush analyst Heather Behanna reiterated an Outperform rating and $17 price target on Catabasis (NASDAQ: CATB) after the company and Sarepta (NASDAQ: SRPT) announced a joint research collaboration to investigate combination treatment for DMD.
Behanna commented, "For the collaboration, Sarepta will provide its exon-skipping technology and Catabasis will provide its NF-kB inhibitor, CAT-1004, towards exploring the effects of a joint treatment approach for treating DMD using a preclinical mouse model. As a reminder, CAT-1004 has potential to work in all DMD boys, as NF-kB inhibition may decrease overall inflammation of muscle and improve outcomes, similar to what is observed with current steroid treatment; we would expect the mechanism of the two therapies to be complimentary."
Beyond an anti-inflammatory effect, CAT-1004 may directly help dystrophin production, Behanna said. "A recent publication demonstrated that in in vivo models, inhibition of NF-kB resulted in the downregulation of microRNAs shown to decrease dystrophin production; this effect was also observed in vitro in samples taken from Becker muscular dystrophy patients (Cell Rep. 2015 September 8; 12(10): 1678--1690). Therefore, we believe an NF-kB inhibitor in combination with an exon-skipping treatment which leads to dystrophin production could have an additive effect in increasing dystrophin production and improving outcomes in DMD patients."
Shares of Catabasis closed at $4.48 yesterday.
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