H.C. Wainwright has affirmed a Buy rating on Cardiol Therapeutics (NASDAQ: NASDAQ:CRDL) with a consistent price target of $9.00.
The firm's endorsement follows Cardiol Therapeutics' announcement on October 21, regarding the expansion of its MAVERIC clinical development program.
The MAVERIC-2 trial is set to assess the effects of CardiolRx on patients with recurrent pericarditis (RP) after they have stopped treatment with interleukin-1 (IL-1)-based blocker RP therapy.
Cardiol Therapeutics' decision to proceed with the MAVERIC-2 trial aims to address the needs of a distinct RP patient group that is not covered by the initial MAVERIC-Pilot study.
This move is seen as a strategic effort to broaden the potential market for CardiolRx. Current data suggests that while 15-30% of patients with an initial episode of pericarditis relapse despite receiving optimal medical treatment, the recurrence rate can soar to as much as 75% after discontinuing IL-1 blocker therapy.
Arcalyst (rilonacept), a treatment for RP marketed by Kiniksa Pharmaceuticals (NASDAQ:KNSA), is identified as an expensive option, with an annual therapy cost nearing $300,000. Due to its high cost, Arcalyst is typically considered a third-line treatment. This creates a window for CardiolRx to be utilized earlier in treatment regimens, potentially allowing for premium pricing.
H.C. Wainwright's position reflects optimism about the potential for CardiolRx to serve an underserved patient population and to establish itself as a competitive treatment option in the RP market.
With the continuation of the MAVERIC-2 trial, Cardiol Therapeutics is poised to explore new opportunities in the therapeutic landscape for recurrent pericarditis.
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