Dianthus Therapeutics announced an early “go” decision for its experimental drug claseprubart in its Chronic Inflammatory Demyelinating Polyneuropathy program based on analysis of data from a part of its late-stage trial.
- The “go” decision was reached early, ahead of the company’s second quarter expected timeline.
- The results from the interim analysis appear stronger than those reported by Sanofi's experimental drug riliprubart in its open-label mid-stage CIDP study, Truist said.
- H.C. Wainwright increased its view of the probability of launch for claseprubart to 35% from a previous 26%.
Shares of Dianthus Therapeutics, Inc. (DNTH) soared 19% on Monday after the company announced an early “go” decision for its experimental drug claseprubart in its Chronic Inflammatory Demyelinating Polyneuropathy (CIDP) program, boosting Wall Street optimism.
The company said that the decision was based on an analysis of data from a part of its late-stage trial in which a response rate of 50% or greater was observed. Twenty or more responders were confirmed out of the first 40 participants to complete part A of the trial and no related serious infections or discontinuations were observed, the company said.
The “go” decision was reached early, ahead of the company’s second quarter expected timeline, and confirmed by an independent Data Safety Monitoring Board review, it added.
The decision supports continued development of claseprubart into the pivotal portion of the trial in CIDP, the company said. Dianthus Therapeutics said that it will maintain the dose as is in the part A portion of the trial and engage with regulators to remove a lower dose arm in the part B portion.
Chronic Inflammatory Demyelinating Polyneuropathy (CIDP) is a rare, acquired autoimmune disorder where the immune system damages the myelin sheath of peripheral nerves, causing progressive or relapsing muscle weakness, numbness, and sensory loss. Other firms developing drugs for the condition include Sanofi (SNY) and Argenx SE (ARGX).
Wall Street Responds
Truist raised the firm's price target on Dianthus to $110 from $63 and kept a ‘Buy’ rating on the shares. The results from the interim analysis appear stronger than those reported by Sanofi's experimental drug riliprubart in its open-label mid-stage CIDP study, the analyst told investors in a research note.
H.C. Wainwright analyst Swayampakula Ramakanth, meanwhile, raised the firm's price target on Dianthus to $130 from $47 and kept a ‘Buy’ rating on the shares. The firm increased its view of the probability of launch for claseprubart to 35% from a previous 26% and also raised its price estimate to $450,000 per patient per annum compared to its prior $250,000 estimate.
TD Cowen, which views Dianthus as "a viable takeout target," also kept a ‘Buy’ rating on the shares.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around DNTH stock jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume increased from ‘high’ to ‘extremely high’ levels.
DNTH stock has more than tripled over the past 12 months.
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