An optimistic trial outlook on Clementia Therapeutics, Inc. CMTA’s palovarotene in FOP patients could give the pharmaceutical company a leg up in an unmet market for the treatment of a rare disease, according to B. Riley FBR.
The Analyst
Madhu Kumar of B. Riley FBR initiated coverage on Clementia with a Buy rating and 12-month price target of $25.
The Thesis
Clementia is a Canadian pharmaceutical company focused on the treatment of hereditary bone growth disorders. The company’s palovarotene is currently undergoing trials for fibrodysplasia ossificans progressiva, a rare progressive bone disease for which there is no approved therapy.
Phase 2 trial data for palovarotene yielded optimistic results and has made analysts hopeful for Phase 3, Kumar said. The trial saw over a 95-percent reduction in heterotopic ossification in patients that underwent palovarotene dosing.
“Overall, FOP is a progressive, lethal genetic disease of bone hypergrowth with no approved therapies, suggesting substantial unmet medical need," Kumar said.
Price Action
At the time of publication, shares of Clementia were trading down 4.43 percent at $15.76.
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