HCW starts Constellation Pharma at buy; PT $18

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H.C. Wainwright launched coverage of Constellation Pharmaceuticals (NASDAQ:CNST) with a “buy” rating and $18. The stock closed at $5.27 on Dec. 19.

Constellation is using its expertise in epigenetics to discover and develop novel therapeutics that address serious unmet medical needs in patients with cancers associated with abnormal gene expression.

“We believe the merits of Constellation’s two lead programs, CPI-1205 and CPI-0610, are largely derived from the successful identification of target patient populations that may likely benefit from each drug; early clinical data that demonstrated safety, favorable pharmacokinetics and pharmacodynamics; and important proof of concept efficacy data generated for both programs, which suggest superiority to existing treatments,” writes analyst Andrew Fein.

Mr. Fein said he is currently assigning values to Constellation’s two lead programs: CPI-1205 in metastatic castration-resistant prostate cancer and CPI-0610 in myelofibrosis, with a probability of success of 15% for both, based on historical success rate of about 8% with similar stage oncology programs and “our favorable view of Constellation’s programs.”

Sydney Stewart