Corbus Moves Lead Candidate To Phase 3 Study, Offers Good Investment Deal

Corbus Pharmaceuticals Holdings (CRBP) is engaged in controversial yet lucrative medical cannabis sector. The company is currently working to develop  anabasum, an endocannabinoid-mimetic drug to treat inflammatory and fibrotic diseases. It recently announced the results from the previously completed Phase 2 clinical study of the lead drug candidate for the treatment of diffuse cutaneous systemic sclerosis. The company outlined its further plans with the drug as it plans to start the Phase 3 study for Systematic Sclerosis in the fourth quarter. The enrollment is expected to be completed by 2018 and the study is likely to culminate in 2019.

Anabasum is the only drug candidate in Corbus’s pipeline. However, the drug is being tested for four different indications. For systematic sclerosis, it has already advanced to Phase 3 while for cystic fibrosis, it is in Phase 2B. For two other indications, Dermatomyositis and Systematic Lupus Erythematosus, the drug is in Phase 2. The global market size for cystic fibrosis isexpected to reach $4.5 billion by 2019. These multiple studies ensure that the company has several catalysts coming up in the near future, which may fuel the growth of the stock price. The stock price recently saw some dip as it lost nearly 7 percent of its value in the past one month. This dip offers an exciting opportunity for mid-term investors to create a position in the stock. The investment is expected to yield good results as the company progresses with its upcoming catalysts in the form of advancement in drug testing phases.

Risks

The company has only one drug in its pipeline, though the drug is being tested for multiple indications. The reliance on one drug makes this stock a slightly risky bet. The company currently has negligible revenue, which may cause some liquidity crunch. Apart from this, Corbus is engaged in developing cannabinoid based drug. Any negative action from the regulators with regard to cannabis may have adverse impact on the company’s fortunes. However, with over 100 percent growth in the past 12 months, Corbus stock has the potential to provide matching returns for its high risk profile.

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