H.C. Wainwright Reiterates Buy Rating on Connect Biopharma Holdings Ltd (CNTB)

H.C. Wainwright analyst Emily Bodnar reiterated a Buy rating and $8.00 price target on Connect Biopharma Holdings Ltd (NASDAQ: CNTB).

The analyst commented: "This morning, Connect Biopharma announced full-year 2024 financial results and provided a corporate update, detailing its plans to advance a Phase 2 trial of rademikibart for treatment of acute exacerbations due to asthma or COPD in 2Q25. As a reminder, rademikibart is the company's monoclonal antibody against IL-4Rα, similar to Dupixent, which has shown improved target engagement. The company has identified acute exacerbations as an indication with no competition against Dupixent given this is not an approved indication nor one being evaluated by Regeneron (REGN; not rated). While Dupixent is approved for asthma and recently approved for chronic obstructive pulmonary disease (COPD), it is indicated as a chronic treatment for both diseases. Despite patients receiving chronic treatment of these diseases, many patients still have acute exacerbations (sudden worsening of a chronic condition), which are triggered by respiratory infections, allergic reactions, or other factors. It is estimated that there are ~1.6M cases of emergency department or urgent care visits related to acute exacerbations annually in the US. The only treatment for patients is currently a bronchodilator or corticosteroids such as prednisone. These treatments often do not work immediately and the rate of secondary exacerbations is high at ~50%. While rademikibart was not evaluated in COPD patients, a subgroup of patients in the Phase 2b asthma trial who were COPD-like (asthma onset age >40 year and post−bronchodilator FEV1/forced vital capacity <0.7 at screening visit) had significant benefit on FEV1 change compared to placebo. Rademikibart was shown to have effects as soon as Day 1, indicating quick onset of action. We have added acute exacerbations to our model and estimate global peak sales of $2.3B by 2038, which we probability-adjust by 25%. Reiterate Buy rating and 48 PT."

For an analyst ratings summary and ratings history on Connect Biopharma Holdings Ltd click here. For more ratings news on Connect Biopharma Holdings Ltd click here.

Shares of Connect Biopharma Holdings Ltd closed at $0.55 yesterday.

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