First Berlin Equity Research has published a research update on Cardiol Therapeutics Inc. (ISIN: CA14161Y2006). Analyst Christian Orquera reiterated his BUY rating and increased the price target from USD 3.60 to USD 8.50.

Abstract
Cardiol Therapeutics (Cardiol) announced excellent topline data for its phase II open-label pilot US study (MAvERIC-Pilot) of the lead drug candidate CardiolRx for the treatment of recurrent pericarditis (RP) in 27 patients. CardiolRx’s efficacy on two key endpoints is very similar in magnitude of improvement to that demonstrated in phase II/III trials by the immunosuppressive biologic therapy rilonacept (Arcalyst), which is FDA-approved and currently used as a third-line treatment of RP. Critically however, CardiolRx’s tolerability and side effect profile is expected to be much more favourable than rilonacept which has risks typical of immunosuppressants, i.e. serious infection. Subject to approval, we therefore expect CardiolRx to be used as a second-line therapy in RP. In 2023 rilonacept generated USD233m of sales in its third year since FDA approval. Given CardiolRx’s efficacy, tolerability and side effect profile, we believe the drug has the potential to substantially exceed this figure. We have updated our sum-of-the-parts valuation model to reflect the progress made and the potential expansion into the EU market, resulting in a higher price target of USD8.50 (€7.80), previously: USD3.60 (€3.30). We reiterate our Buy recommendation.