Mizuho Is Bullish On This Schizophrenia-Focused Stock, Read Why

Mizuho Is Bullish On This Schizophrenia-Focused Stock, Read Why
  • Mizuho updated the price target for Cerevel Therapeutics Holdings Inc CERE from $27 to $32 keeping the Neutral rating.
  • The updated model reflects additional de-risking of emraclidine (a novel M4 PAM for schizophrenia) following the announcement of positive Phase 3 data for KarXT, a similarly acting drug Karuna Therapeutics Inc's KRTX schizophrenia drug.
  • Related: Karuna Therapeutics Shares Surge After Encouraging Data From Schizophrenia Candidate.
  • After increasing the probability of success assumption to 70% (from 60%) for emraclidine, and making refinements to product revenue build, the peak US risk adjusted/unadjusted emraclidine sales forecast increases slightly to $3.4 billion/$2.4 billion from the prior $3.3 billion/$2 billion. 
  • Related: Cerevel's Acute Anxiety Candidate Shows Encouraging Action In Healthy Volunteers.
  • Mizuho analyst believes that based on the solid Phase 3 data results for KarXT, and the previously reported positive Phase 1b/2 data for emraclidine, the following clinical datasets should be positive and supportive.
  • Price Action: CERE shares are up 3.28% at $33.67 on the last check Tuesday.
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