Up 174% in 2024, Is It Too Late to Buy This Breakout Biotech Stock?

The biopharmaceutical industry is thriving, fueled by groundbreaking advancements in treating cancers, Alzheimer’s, obesity, diabetes, and autoimmune diseases. At the core of this explosive growth lies a fusion of cutting-edge research and artificial intelligence (AI)-driven innovations, speeding up drug development and enhancing treatment outcomes while slashing costs.

While big pharma giants like Eli Lilly and Company (LLY), Pfizer (PFE), and Merck (MRK) grab the headlines, it's the clinical-stage biopharma companies that are often the hidden gems.

Corbus Pharmaceuticals Holdings, Inc. (CRBP), a clinical-stage biopharma firm pioneering cannabis-based treatment to combat rare and chronic diseases, has broken out this year, making progress across its pipeline.

Wall Street is bullish on the firm, with analysts projecting significant upside potential for the stock.  Despite a double-digit pullback from July’s peaks, CRBP is already up 174% so far in 2024, crushing the broader market’s gains.

So, has the moment passed for investors to jump on this biotech stock, or can they still score big in this fast-paced arena? Let’s find out.

About Corbus Pharmaceuticals Stock

With a market cap of around $177.3 million, Norwood, Massachusetts-based Corbus Pharmaceuticals Holdings, Inc. (CRBP) is a biopharma company on a mission to tackle life-threatening diseases.

Founded in 2009, this company is making strides in developing innovative treatments. At the forefront of its pipeline is CRB-701, an antibody-drug conjugate (ADC) targeting Nectin-4 on cancer cells. This promising treatment, currently in Phase I trials, delivers a powerful cytotoxic punch using monomethyl auristatin E (MMAE) to take down aggressive tumors.

Corbus is also exploring treatments for solid tumors with CRB-601, an anti-integrin monoclonal antibody, and CRB-913, a cannabinoid type-1 receptor inverse agonist targeting obesity. The company’s strategic partnership with Jenrin Discovery adds even more depth to its research, with access to a library of 600 compounds.

Shares of the oncology biotech firm are currently trading nearly 73% off their July high of $61.90, but CRBP stock has skyrocketed 185% over the past 52 weeks, surging past the broader S&P 500 Index’s ($SPX) 36.7% returns and S&P Biotech SPDR’s (XBI) 45% gains over the same period.

The stock’s impressive performance can be attributed to the promising early data for its lead cancer drug, CRB-701, igniting investor excitement about its potential across various solid tumors. 

However, CRBP’s pullback stems from caution. While larger pharma companies like Bristol-Myers Squibb Company (BMY) and AbbVie Inc.(ABBV) are acquiring ADC developers, those deals involve drugs further along in trials or already FDA-approved. Corbus, still in the earlier stages, hasn’t attracted similar offers yet, leaving room for volatility as investors weigh the risks despite its promising early results.

Corbus Slides on Novo’s News

On Sept. 20, shares of Corbus Pharmaceuticals took a nosedive, plummeting 62.2% after competitor Novo Nordisk (NVO) announced trial results for monlunabant, a cannabinoid receptor 1 (CB1) inverse agonist aimed at weight loss. While Novo's data showcased significant weight reduction among participants, it also raised safety concerns regarding neuropsychiatric side effects.

As investors digested the implications, uncertainty loomed over Corbus’s own candidate, CRB-913, which targets the same CB1 receptor. 

Corbus Dips After Q2 Earnings Results

Previously, shares of Corbus dipped on Aug. 6 after the firm released its fiscal Q2 earnings results, delivering a narrower-than-anticipated net loss of $0.90 per share. The loss shrunk by 56.1% year over year and beat Wall Street’s projections of a $1.16 per share loss. 

As a pre-revenue biotech, maintaining a well-capitalized balance sheet is essential for sustaining its R&D efforts. Corbus ended the quarter with a solid $147 million in cash and investments, bolstered by a $35.6 million boost from its ATM program during Q2. From July 1 to Aug. 1, 2024, an additional $28.8 million flowed in, providing the company with a projected three-year cash runway.

This financial cushion allows Corbus to push forward with its lead programs, particularly CRB-701, as it continues to generate positive clinical data. With the funding supporting ongoing and planned clinical trials, Corbus is well-positioned to advance its innovative pipeline without the immediate need for additional capital, giving it the freedom to chase its ambitious goals. 

Analysts tracking Corbus project the company’s GAAP loss to narrow by 63.1% to $3.80 per share in fiscal 2024.

What Do Analysts Expect for Corbus Stock?

Analyst sentiment remains positive on Corbus, with Oppenheimer recently backing its "Outperform" rating, even as the stock’s price target was revised down from $88 to $60. The brokerage firm highlighted strong progress in clinical trials, particularly the CRB-701 dose-escalation study, with data expected next year. 

However, Oppenheimer sees more than just CRB-701 in the spotlight. With the Investigational New Drug (IND) filing for CRB-913 on the horizon, the analyst writes that CRBP’s current valuation seems to only scratch the surface. 

The consensus among eight analysts covering CRBP stock is a "Strong Buy," out of which seven recommend a “Strong Buy,” and one advises a “Moderate Buy.” 

The average analyst price target of $63 indicates a potential upside of 280% from the current price levels. The Street-high price target of $82 suggests that CRBP stock could rally as much as 395%. 

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On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.