Analyst Jonathan Wolleben of JMP Securities reiterated a Buy rating on Spruce Biosciences (SPRB – Research Report), retaining the price target of $3.00.
Jonathan Wolleben has given his Buy rating due to a combination of factors, including the anticipation of key data from upcoming trials and the company’s financial position. Spruce Biosciences is expected to report CAHmelia-204 trial data in the next quarter, and the analyst is optimistic about the potential effectiveness of the 200 mg tildacerfont dose, especially since compliance rates are higher than in previous studies. Additionally, the company has strategically added cohorts to the CAHptain-205 trial to explore higher doses, which could provide valuable insights into the dose-response relationship and guide future dosage selection.
Financially, Spruce Biosciences ended the first quarter with a substantial cash reserve, which is projected to sustain operations until the end of 2025. Despite disappointment in the earlier CAHmelia-203 trial results, the new analyses showed that compliant patients experienced better outcomes, suggesting that tildacerfont is indeed active and could be effective at higher doses. With the expectation of a meeting with the FDA to discuss the progression to Phase 3 trials, and considering the stock’s valuation at less than half of its cash reserves, Wolleben sees a favorable risk/reward scenario for the company’s shares, bolstering his Buy rating.
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Spruce Biosciences (SPRB) Company Description:
Spruce Biosciences Inc is a late-stage biopharmaceutical company focused on developing and commercializing novel therapies for rare endocrine disorders. The company is developing its wholly-owned product candidate, tildacerfont, as the potential first non-steroidal therapy to offer improved disease control and reduce steroid burden for patients suffering from classic congenital adrenal hyperplasia (CAH).
