Catabasis Pharmaceuticals Inc sunk more than six percent lower today, falling ten cents to hit $1.45 at the market close. Earlier this morning it was announced that the company’s common stock had its Outperform rating reiterated by an analyst at Wedbush – who maintained a $4.00 price target. The upside indicated is about 176 percent.
“With numerical improvements in all function-associated endpoints observed in Part B of the MoveDMD trial, we believe extended treatment with edasalonexent (CAT-1004) could result in a deepening of the response—a potential positive sign that could boost shares,” said Wedbush analyst Liana Moussatos. “We continue to look to Q2:17 for an interim look of the MoveDMD study at 24 weeks (Part C) as the next material catalyst.”
Catabasis had announced its fourth-quarter financial results on Thursday after the market close, which included updates on its MoveDMD trial for its Duchenne Muscular Dystrophy (DMD) product. Part B of the trial has already been completed, when the product was not able to achieve a composite endpoint at the 12-week mark. According to the company’s Chief Executive Officer, Part C of the program is “continuing on track.”
The company is essentially hoping that extended treatment in Part C will lead to proof of functional benefits.
Apart from announcing details on its pipeline, Catabasis also reported its adjusted net income for the fourth fiscal quarter. During the three-month period, the company managed to generate a loss of 47 cents. Wall Street analysts, on average, were expecting the company to post a loss of 52 cents per share.
Research and development expenses dropped from $6.7 million in the fourth quarter of 2015 to $6.3 million in the reported quarter. The company had $38.5 million in the bank at the end of fiscal 2016, down from $47.3 in the year-ago period.
The company is scheduled to present data from Part B of the MoveDMD trial evaluating CAT-1004 on Wednesday, March 22nd, at the 2017 Muscular Dystrophy Association Scientific Conference in Arlington, Virginia. Catabasis’ Chief Executive Officer, Jill C. Milne, Ph.D., will also give a presentation at Oppenheimer’s 27th Annual Healthcare Conference – which will take place the very same day in New York.
The author of this article holds no position in any of the stocks mentioned above.