UPDATE: Morgan Stanley Starts Centessa Pharmaceuticals (CNTA) at Overweight

Morgan Stanley analyst Matthew Harrison initiates coverage on Centessa Pharmaceuticals (NASDAQ: CNTA) with a Overweight rating and a price target of $37.00.

The analyst comments "Centessa is a combination of 10 operating subsidiaries pursuing 16 different molecules. Each subsidiary is a single-purpose company focused on programs related to a single biological pathway. However, when aggregated, the combination does leverage the benefits of diversification/scale typically associated with larger companies.Further, investors benefit from centralized capital allocation decisions so that money can be redirected away from programs which don't meet certain success hurdles to those thathave positive data. Each of Centessa’s subsidiaries has a distinct value proposition and is led by an independent executive team,each with subject matter expertise specific to their company’s pipeline,allowing for a focused approach to drug development. Importantly,unlike other asset combinations, we believe all of Centessa's lead assets are viable independent and have high probabilities of success (for their stage of development). Ultimately, the assets will drive CNTA."

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

Shares of Centessa Pharmaceuticals closed at $24.76 yesterday.

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