Wedbush Reiterates Outperform, $17 PT on Catabasis (CATB) on Sarepta Collaboration

September 29, 2016 11:03 AM EDT
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Price: $4.97 +19.76%

Rating Summary:
    5 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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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."

For an analyst ratings summary and ratings history on Catabasis click here. For more ratings news on Catabasis click here.

Shares of Catabasis closed at $4.48 yesterday.

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