First Berlin Equity Research has published a research update on Cardiol Therapeutics Inc. (ISIN: CA14161Y2006). Analyst Christian Orquera reiterated his BUY rating and maintained his USD 8.50 price target.

Abstract
Cardiol Therapeutics has reported topline results from its phase II ARCHER trial evaluating CardiolRx in acute myocarditis (AM), a serious inflammatory heart condition with no approved therapies. The trial demonstrated a strong trend toward improvement in the first primary endpoint?left ventricular extracellular volume (ECV), a cardiac MRI marker of inflammation and scarring in heart tissue?compared to placebo (p=0.0538). The second co-primary endpoint, global longitudinal strain (GLS), a measure of heart muscle contractility, showed no difference between groups?likely because most participants had preserved heart function at baseline (i.e., normal pumping strength). However, ECV reductions were linked to improvements in several pre-specified MRI endpoints, including a statistically significant reduction in left ventricular (LV) mass, which is commonly associated with heart inflammation, swelling and higher mortality. CardiolRx was safe and well tolerated, consistent with prior trials. These results offer objective evidence of the drug candidate’s biological activity and reinforce its differentiated positioning in inflammatory heart diseases, including AM, pericarditis, and heart failure. We believe the results establish a solid foundation to advance into phase III development or attract partnerships. We reiterate our Buy rating and USD8.50 price target.