Corvus Pharmaceuticals Faces Stock Price Target Cut After Drug Plan Adjustment
Oppenheimer’s Latest Rating and Price Target Reduction
On Tuesday, Oppenheimer kept an Outperform rating on Corvus Pharmaceuticals (NASDAQ:) but reduced the stock’s price target to $7.00, down from the previous $8.00. This shift came after the company revealed its fourth-quarter and full-year results, outlining a revised strategy for its primary drug candidate, soquelitinib.
Strategic Focus on Lead Drug Candidate
The biopharmaceutical company has opted to prioritize a pivotal study for soquelitinib in relapsed or refractory peripheral T-cell lymphoma (rPTCL) and demonstrate human proof of concept for treating atopic dermatitis. Plans for developing soquelitinib for renal cell carcinoma (RCC) have been temporarily suspended.
Emerging Business Development Initiatives and Financial Constraints
Corvus Pharmaceuticals is intensifying its business development efforts with the recent appointment of a Chief Business Officer (CBO) to drive these initiatives forward. Despite these strides, financial limitations persist, with the company concluding the year with $27.1 million in cash reserves.
Financial Challenges and Future Prospects
Analysts at Oppenheimer highlight the absence of clear guidance on financial sustainability, suggesting potential hurdles for Corvus in maintaining cash reserves through Q4 2024. A financing event or significant partnership may be necessary to prolong operations, influencing the updated price target and future financial expectations.
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