Celldex Therapeutics could rival a key Regeneron Pharmaceuticals drug, an analyst said Monday as CLDX stock rocketed on the results of multiple studies.
Celldex tested its drug, dubbed barzolvolimab, in patients with prurigo nodularis and chronic spontaneous urticaria. In the former disease, patients develop nodules on their extremities. In the latter, patients have unexplained hives for at least six weeks.
Early results suggest barzolvolimab could compete with Regeneron's Sanofi-partnered Dupixent, Leerink Partners analyst Thomas Smith said in a report. Dupixent treats myriad inflammatory and allergic conditions. Barzolvolimab works by depleting mast cells, which are increased in both autoimmune diseases.
On today's stock market, CLDX stock jumped 12.9% to 29.35.
CLDX Stock: Reductions In Itching
Celldex tested barzolvolimab in a Phase 1 study of 24 adults with moderate to severe itching due to prurigo nodularis. After eight weeks, 57% of high-dose recipients and 43% of low-dose patients had at least a four-point reduction on a 10-point scale measuring itch symptoms. Just 25% of patients who received a placebo met the same bar.
The results generally persisted over 16 weeks of treatment, Celldex said in a news release.
At the high dose, patients experienced itch relief as early as the first week. Almost three-quarters of patients, 71%, had at least a four-point decrease in itching symptoms after six weeks. Bullishly for CLDX stock, this was "distinct" from the low-dose version of barzolvolimab and the placebo, the company said.
Celldex also studied three doses of barzolvolimab in patients with chronic spontaneous urticaria. After 12 weeks, the hives disappeared for 22.9% to 51.1% of patients, depending on the dosage. The best response was from the midsize dose. The hives were considered well controlled for 41.7% to 62.5% of patients, with the best response at the high dose.
Smith kept his outperform rating on CLDX stock.
"Overall, we view these early (effectiveness) signals as highly encouraging, and supportive to our thesis that barzolvolimab has the potential to be a best-in-class therapy driven by a unique mast cell-depleting mechanism of action," he said.
Lowly Rated Stock
It's important to note, CLDX stock has low IBD Digital ratings. Shares have a poor Relative Strength Rating of 16, putting them in the lowest 16% of all stocks when it comes to 12-month performance.
But shares retook their 50-day moving average — a bullish signs. At one point, CLDX stock came within pennies of its 200-day line, according to MarketSmith.com.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
