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 (Cardiol) has announced the initiation of a phase II/III clinical trial within its development programme CardiolRx for the treatment of recurrent pericarditis (RP). The new pivotal study, MAVERIC-2, will target a subset of RP patients, those who discontinue interleukin-1 (IL-1) blocker therapy (i.e. third-line therapy with ARCALYST/rilonacept or KINERET/anakinra). MAVERIC-2 will target the growing proportion of patients who experience a recurrence of pericarditis after discontinuation of IL-1 blockers (up to 75% recurrence rate). CardiolRx represents a potentially effective, more patient-friendly and cost-effective treatment alternative for patients with dependence on IL-1 blockers. Given the high unmet medical need in this population, MAVERIC-2 could offer a potentially faster route to approval. Importantly, MAVERIC-2 will run concurrently with Cardiol’s planned MAVERIC-3 without negatively impacting trial timelines and has the potential to expand the addressable market from second-line only (MAVERIC-3) to second- and third-line therapy. The company recently completed a capital increase of USD15.5m to fund the new trial and ongoing operations. The next major catalyst will be the presentation of full clinical data from the MAVERIC-Pilot phase II study in an oral presentation at the American Heart Association Scientific Sessions on 18 November 2024. We have updated our SOTP valuation model, which still yields a price target of USD8.50. We reiterate our Buy recommendation.
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