Capricor Therapeutics Outlook Boosted by European Commercialization Agreement
On Tuesday, Oppenheimer raised its price target for Capricor Therapeutics (NASDAQ: CAPR) to $15.00, up from $14.00, while maintaining an Outperform rating. This adjustment follows the announcement of a binding agreement with Nippon Shinyaku for the European commercialization of deramiocel, Capricor's leading candidate for Duchenne muscular dystrophy.
The partnership with Nippon Shinyaku, already Capricor's partner in the U.S. and Japan, expands the company's reach into a major pharmaceutical market and demonstrates confidence in deramiocel's regulatory prospects. The deal is expected to extend Capricor's cash runway into 2026.
As Capricor gears up for engagement with EU regulators and awaits FDA approval details for the U.S., Oppenheimer predicts a potential U.S. launch by late 2025, with projected sales reaching $1 billion by 2030. The revised price target reflects a positive outlook for Capricor, attracting investor attention with its progress and strategic partnerships.
Additionally, Capricor secured a $35 million financial agreement with Nippon Shinyaku, bolstering its financial position for global distribution of deramiocel. Despite a Q2 2024 net loss, Capricor maintains a strong cash position and is in advanced discussions for European distribution.
InvestingPro Insights:
Investors monitoring Capricor's progress should note its market capitalization of $164.65 million and high Price / Book multiple. While revenue growth has been significant, challenges remain in profitability. With more cash than debt, Capricor shows financial stability, but analysts anticipate non-profitability this year amid stock price volatility.
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