Centessa Pharmaceuticals (CNTA) has received a new Buy rating, initiated by B.Riley Financial analyst, Mayank Mamtani.
Mayank Mamtani has given his Buy rating due to a combination of factors surrounding Centessa Pharmaceuticals' advancement in targeting the orexin pathway, which plays a critical role in regulating sleep-wake functions. The company's ORX750, a highly potent and selective OX2R agonist, has shown promise with its transition into Phase II studies. This progression is particularly significant as it targets a market with a high unmet medical need and a substantial economic opportunity, estimated to exceed $5 billion. The drug's potential for treating rare hypersomnia disorders, such as narcolepsy types 1 and 2, and idiopathic hypersomnia, underscores its value proposition in a space with a considerable number of patients globally. Moreover, Mamtani anticipates that Centessa's TAM (total addressable market) could expand further into broader neurodegenerative and psychiatric disorders, potentially elevating the company's valuation considerably.
Mamtani's optimism also stems from the impressive interim data from Phase I studies, which demonstrated ORX750's potency, safety, and tolerability in sleep-deprived healthy volunteers, exceeding initial investor expectations. The drug's differentiated pharmacokinetic and pharmacodynamic profile suggests it could offer dosing flexibility and convenience, potentially addressing a significant portion of the narcolepsy market. Additionally, the preclinical and early clinical data suggest that Centessa's ORX750 may surpass peers' efficacy at lower, more tolerable doses, which could position the company favorably against competitors and potentially lead to an accelerated time to market. These factors, combined with the strategic development of their follow-on molecule ORX142 and the potential for market expansion, provide a strong basis for Mamtani's Buy rating.
According to TipRanks, Mamtani is an analyst with an average return of -12.2% and a 28.40% success rate. Mamtani covers the Healthcare sector, focusing on stocks such as Cytokinetics, Altimmune, and Harrow Health.
In another report released on September 16, BMO Capital also maintained a Buy rating on the stock with a $35.00 price target.
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Centessa Pharmaceuticals (CNTA) Company Description:
Centessa Pharmaceuticals PLC is a pharmaceutical company. Its portfolio consists of preclinical to phase 3 uncorrelated programs spanning diseases with high unmet need across oncology, hematology, immunology, inflammation, neuroscience, and rare diseases. Some of its products include Vasopressin V2 Receptor Inhibitor (Lixivaptan), BMP9 Engineered Variant (MGX292), OX2R Agonist (Oral) among others.