Guggenheim Reaffirms Buy Rating on Celldex Therapeutics Despite Safety Concerns - Analysts Remain Bullish on Stock
Guggenheim has reaffirmed its Buy rating on Celldex Therapeutics, despite concerns over safety issues in its recent clinical study. The firm maintains its established price target, suggesting that investor worries following the release of 52-week data from the Phase II study of barzolvolimab for chronic spontaneous urticaria (CSU) are unwarranted.
The study revealed an increase in instances of neutropenia, affecting 17% of participants, up from 9% at the 12-week mark. Other issues such as hypopigmentation and cases of macrocytic anemia were also noted. However, Celldex provided reassurance on the stability of neutrophil counts and the reversibility of adverse events related to the drug's target, cKIT.
Guggenheim referenced feedback from Key Opinion Leaders (KOLs) indicating that the medical community is comfortable with barzolvolimab's profile as a second-line treatment for CSU. The firm believes that the market's negative reaction to the data release is an overreaction, as the long-term treatment with barzolvolimab does not lead to further declines in neutrophil counts.
In other news, Celldex has reported positive results from its Phase 2 studies on barzolvolimab for CSU and chronic inducible urticaria (CIndU). The company has initiated global Phase 3 trials for CSU and completed patient enrollment for its Phase 2 trial for CIndU.
Financial analysts at Stifel and Wolfe Research have reiterated their Buy and Outperform ratings on Celldex, respectively. Despite concerns over safety findings, Celldex has demonstrated resilience with a 58.51% return over the past year.
InvestingPro Insights:
- Celldex holds a market capitalization of $2.36 billion.
- The company has shown strong stock performance with a 58.51% return over the past year.
- Revenue growth has increased by 155.16% over the last twelve months, indicating potential for future growth.
- Analysts do not expect Celldex to be profitable this year, and the company faces challenges with weak gross profit margins.
Overall, despite safety concerns, Celldex Therapeutics remains a promising investment opportunity with potential for growth. Investors should consider the company's financial health and stock performance before making any investment decisions.