Stifel starts Celldex at buy, sees lead drug as potential blockbuster

sutthirat sutthisumdang Stifel initiated coverage of Celldex Therapeutics ( NASDAQ: CLDX ) with a buy rating, citing the "blockbuster" potential of its drug barzolvolimab in the treatment of chronic spontaneous urticaria, or CSU. The investment bank believes the product could achieve peak US sales of $2.8B, risk-adjusted at 75% probability of success.

It noted that the product’s main competition would be Roche ( OTCQX:RHHBY ) and Novartis' ( NVS ) Xolair, which carries a black box warning for anaphylaxis that largely limits its use to allergists. “We expect next-gen therapies like barzolvolimab to achieve meaningful use, particularly if a clean label is achieved to facilitate adoption by dermatologists,” Stifel added. Stifel set its price target for the stock at $58.

More on Celldex Celldex Therapeutics: Rising High, With Room For Further Growth Celldex initiated to outperform at Wolfe on barzolvolimab for skin disease Seeking Alpha’s Quant Rating on Celldex Historical earnings data for Celldex Financial information for Celldex.