Contineum draws bullish view at Baird on de-risked assets

Following a three-day selloff, Contineum Therapeutics (NASDAQ:CTNM) traded higher on Tuesday after Baird launched its coverage with an Outperform recommendation, noting that data for other treatments have already de-risked its two clinical-stage assets.

Analyst Joel Beatty pointed to Contineum’s (NASDAQ:CTNM) lead assets PIPE-791 and PIPE-307, noting that while the duo is still in the early stages of development, “three of the four indications they’re in development for are partially de-risked by clinical data from other agents.”

Beatty argued that despite having a similar mechanism to Bristol Myers Squibb’s (BMY) Phase 3 agent BMS-986278, PIPE-791, which targets the lung disorder idiopathic pulmonary fibrosis, has a better dosing regimen and efficacy compared to the rival’s candidate.

The analyst also noted that Contineum’s (CTNM) lead asset PIPE-307, a collaboration with Johnson & Johnson (JNJ), is partially de-risked by third-party clinical data for FDA-approved drugs, clemastine and scopolamine.

Beatty issued a $32 price target on CTNM, arguing that the end of a mid-stage trial for PIPE-307 in relapsing-remitting multiple sclerosis (RMMS) could be a potential catalyst for the stock in 2025.