Mizuho recommends buying Corbus following its drop post-Novo’s obesity data

Mizuho suggests buying Corbus Pharmaceutical’s (NASDAQ:CRBP) after the company plunged almost 60% on Friday following Novo Nordisk’s (NVO) obesity drug data from its mid-stage study, which were below Street expectations.

Novo Nordisk reported its highly anticipated mid-stage data for monlunabant, its oral weight loss candidate on Friday, whose side-effects underwhelmed investors and the weight loss seen with monlunabant was less than what has been reported with Eli Lilly’s (NYSE:LLY) oral orforglipron, pushing the stock down 6%.

Corbus is developing CRB-913 for obesity, a compound with a mechanism of action similar to monlunabant.

“At current levels, it appears the market is pricing in a worse-case scenario for CRBP’s CRB-913, but Mizuho reminds investors that its valuation on CRBP is much more based on the prospects of the company’s most advanced asset, CRB-701 (a Nectin-4-based ADC for which positive Phase 1 data were presented this summer at ASCO),” Mizuho noted.

Given Mizuho’s view that current weakness represents an overdone knee-jerk reaction, it sees a buying opportunity, and maintain CRBP at OP.

CRBP is up 6% premarket.