The broader biotech industry is showing signs of a strong comeback. After a period of challenges, including reduced FDA approvals and a complex financing landscape, the sector looks poised for a new phase of growth. The FDA's approval of 55 novel therapies in 2023, a near 50% increase from the previous year, has injected new optimism into the market
Amid this backdrop of groundbreaking scientific advancements, robust clinical pipelines, and a favorable regulatory environment, one stock that's really caught the eye of investors and analysts is Corbus Pharmaceuticals (CRBP). Corbus is a biopharmaceutical company focused on developing treatments for serious illnesses, and the stock has skyrocketed by an incredible 716% year-to-date. Analysts are bullish, with the average price target from Wall Street suggesting it's not too late to bet on more upside potential.
Keep reading to find out what makes Corbus Pharmaceuticals such a compelling investment opportunity, and how recent developments in their clinical programs are driving this remarkable growth.
Positive Clinical Data Fuels CRBP's Multibagger Rally
Corbus Pharmaceuticals stock is fresh off a new 52-week high of $50.48 set in Monday's session, fueled by positive trial data that hit the wires over the weekend. The shares are up roughly 400% over the past year, with most of those multibagger gains following a massive gap higher in late January - highlighting the extreme volatility typical of clinical-stage biotech plays.
Specifically, the stock gained 249% in one session on Jan. 26 after reporting positive Phase 1 data from its Chinese partner regarding the first in-human clinical study of CRB-701, an antibody-drug conjugate (ADC) targeting the nectin-4 protein in solid tumors. Investors were understandably excited about CRB-701's potential, especially in the lucrative bladder cancer space where Astellas/Seagen's Padcev is already approved as a Nectin-4 targeting ADC.
The positive January data was just the start for CRB-701. Following up on those encouraging results, Corbus over the weekend released updated Phase 1 trial data for the drug candidate from Chinese partner CSPC, and the results were sufficiently positive to inspire a price-target hike to $80 from $60 at Oppenheimer - as well as new highs in the stock price.
A corresponding study on CRB-701 in the U.S. is on track for completion in the fourth quarter, and data from this stateside study will be closely watched, as it could further validate CRB-701's efficacy and safety profile. Any positive readouts could propel CRBP's stock even higher from current levels.
How Corbus Funds Its Game-Changing Tumor Research
To fund its ambitious clinical plans, Corbus took advantage of its soaring stock price in March by filing for a $300 million mixed shelf offering. While dilutive to existing shareholders, the capital raise provides Corbus with plenty of firepower to advance its pipeline, especially the high-priority CRB-701 program. Based on the stock's continued rally, the market seems willing to accept some dilution in exchange for fueling the company's growth prospects.
For a pre-revenue biotech like Corbus, having a well-capitalized balance sheet is critical to sustaining its R&D efforts and pipeline progression. This capital flexibility could prove valuable, especially if CRB-701 continues generating positive data that further boosts Corbus' market value.
Currently, Corbus sports a market cap of over $500 million. The company recently reported its Q1 2024 earnings, delivering a narrower-than-expected loss. For the quarter, the company posted a net loss of $6.9 million, or $0.83 per share, beating analysts' expectations of a $1.09 per share loss. While earnings numbers are less weighty for clinical-stage biotechs, Corbus' ability to rein in costs and extend its cash runway is certainly a positive for a pre-revenue biotech still heavily investing in its R&D pipeline.
Importantly, Corbus ended the quarter with a robust $120 million in cash and investments on its balance sheet after raising $116 million in capital during the quarter. That cash pile is expected to fund operations through the first quarter of 2027, based on current spending plans. With a projected 3-year runway, the company has ample breathing room to continue advancing its lead programs without raising additional capital in the near term.
Analysts Are Overwhelmingly Bullish
Speaking of analyst sentiment, the Street is overwhelmingly bullish on Corbus. The newly hiked price target from Oppenheimer implies expected upside of 63%, and the mean price target of $71 represents a healthy premium of about 45%.
The consensus among three analysts covering the stock is a "Strong Buy," with two issuing straight “Strong Buy” calls and one rating it a “Moderate Buy.”
The Bottom Line on CRBP Stock Right Now
In a sector known for its ups and downs, Corbus Pharmaceuticals has emerged as one of 2024's biggest biotech winners. The company's stock has skyrocketed, thanks to promising early data for its lead cancer drug, CRB-701. This has sparked investor excitement about its potential across various solid tumors.
Of course, the journey won't be all smooth sailing. Any clinical setbacks or regulatory hurdles could quickly deflate the stock. But for now, Corbus has captured the market's attention with its cancer-fighting prospects. Whether this stellar run continues will depend on the company's ability to meet the high expectations already baked into its soaring share price.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
