First Berlin Equity Research has published a research update on Cardiol Therapeutics Inc. (ISIN: CA14161Y2006). Analyst Christian Orquera reiterated his BUY rating and decreased the price target from USD 8.50 to USD 7.80.

Abstract
Cardiol Therapeutics has presented the full Phase II ARCHER data for CardiolRx in acute myocarditis (AM) at the ESC Working Group on Myocardial & Pericardial Disease (Trieste). The study showed a statistically significant reduction in left-ventricular (LV) mass of 9.2g (~7%) vs placebo (p=0.0117) over 12 weeks. This is notable because increased LV mass reflects ongoing inflammation; a reduction is a marker of healing (reverse remodelling). Other MRI measures moved in the right direction, supporting the same biological story: ECV (extra cellular volume-space outside heart cells, linked to oedema/fibrosis); ICV (intra cellular volume?space inside cells, linked to cellular swelling); LAESV (Left atrial end systolic volume?atrial size/workload); and LVEDV (Left ventricular end diastolic volume?ventricular size). While not every secondary endpoint crossed p<0.05, the data package is coherent: as inflammation resolves inside and outside cells, total myocardial tissue shrinks (captured by LV mass). Safety was benign and in line with prior experience. Despite a near-miss on the co-primary ECV endpoint and a neutral GLS (global longitudinal strain), the pre-specified, statistically significant reduction in LV mass?with supportive remodelling signals?provides robust mechanistic validation of Cardiol’s anti-inflammatory/anti-fibrotic pathway and strengthens the read-through to the phase III MAVERIC programme in recurrent pericarditis (RP) and to CRD-38 in heart failure. Reflecting updated assumptions in our SOTP valuation model?where the higher probability of success in AM is more than offset by post financing dilution?we lower our price target to USD 7.80 (old: USD 8.50). We reiterate our Buy rating (upside: 650%).