Contineum Therapeutics stock falls on phase 2 trial miss

Baird downgraded Contineum Therapeutics (CTNM) to Neutral, lowering its price target to $14 from $19. The stock is near its 52-week low after a trial showed mixed results. Analysts remain divided, with Stifel maintaining a Buy rating and a $28 target, while Goldman Sachs initiated coverage with an Early-Stage Biotech rating.

Contineum Therapeutics (CTNM) shares rose 27% premarket after Bristol Myers Squibb (BMY) reported positive Phase 3 trial results for a pulmonary fibrosis treatment targeting the same pathway as CTNM's lead drug, PIPE-791. BMY's trial met its primary endpoint, showing improved lung function. CTNM's stock was indicated at $16.99, up from $13.38. The results may impact CTNM's valuation, though its drug remains in Phase 2.

Contineum Therapeutics (CTNM) fell 25% after Bristol Myers (BMY) reported mixed Phase 3 trial results for admilparant in IPF. The 60mg dose met its primary endpoint, but the 120mg dose did not. Stifel maintains a Buy rating on CTNM, citing clinical validation for the LPA1 mechanism and potential upside.

Contineum Therapeutics stock surged 21.1% after Bristol Myers Squibb's Phase 3 trial for admilparant in pulmonary fibrosis met its primary endpoint. Contineum's PIPE-791, an LPA1 antagonist, benefits from this validation. Analysts have Buy ratings with targets ranging from $20 to $24. The move is driven by company-specific news, not broader market trends.

Contineum Therapeutics (CTNM) shares rose 27% in pre-market trading after Bristol Myers Squibb's Phase 3 trial for admilparant in idiopathic pulmonary fibrosis met its primary endpoint. Contineum's PIPE-791 targets the same biological pathway. CTNM was indicated at $16.99, up from $13.38. Stifel previously noted the trial's importance for Contineum's valuation.

Contineum Therapeutics (CTNM) and Johnson & Johnson (JNJ) reported that their depression drug, JNJ-5120/PIPE-307, failed to meet the primary endpoint in a Phase 2 trial. The drug showed no new safety issues but did not demonstrate the required efficacy in treating major depressive disorder. JNJ is analyzing additional data to determine the next steps for the program.