Spruce Biosciences (SPRB – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on May 14. Analyst Joseph Schwartz from Leerink Partners maintained a Hold rating on the stock and has a $2.00 price target.
Joseph Schwartz has given his Hold rating due to a combination of factors regarding Spruce Biosciences’s ongoing clinical trials and competitive landscape. Schwartz acknowledges the potential of Spruce Biosciences’s drug candidate, tildacerfont, based on its mechanism of action being similar to a competing drug that has shown positive results. However, he expresses concern about the adequacy of the dosage and frequency used in the CAHmelia-203 study, which may not have been sufficient to demonstrate the drug’s full potential. As a result, there is uncertainty about the upcoming CAHmelia-204 study results, which contributes to his decision to maintain a Hold rating. Schwartz also points out that the company may need further characterization of tildacerfont and possibly higher doses or more frequent treatment to truly showcase its efficacy.
Furthermore, Schwartz compares Spruce Biosciences’s progress with that of competitors who have drugs at more advanced clinical stages or are showing promising results, which could affect Spruce’s position in the market. He notes that while there were directionally favorable reductions observed in certain metrics during the CAHmelia-203 study, these results were not as compelling as those demonstrated by competitors. This competitive context and the need for more clarity on Spruce Biosciences’s strategic approach to its clinical trials and drug development have led Schwartz to advise holding the stock until further data is available, supporting his decision to maintain a Market Perform rating and a price target of $2.
According to TipRanks, Schwartz is a 2-star analyst with an average return of 0.3% and a 39.15% success rate. Schwartz covers the Healthcare sector, focusing on stocks such as Applied Therapeutics, Edgewise Therapeutics, and Regulus.
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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).
