Corvus Pharmaceuticals/CRVS
Research Report

Corvus Pharmaceuticals, a clinical-stage biopharmaceutical company developing precision medicines to treat cancers and autoimmune diseases, has the potential to generate hundreds of millions of dollars over the next decade, an H.C. Wainwright & Co. analyst wrote in a January 2 research note.

The California company’s lead product is soquelitinib, a first-in-class ITK-specific inhibitor that is being investigated for the treatment of both T-cell lymphomas and atopic dermatitis (AD).

"Beyond these, we believe soquelitinib has potential in a variety of other disorders such as psoriasis, inflammatory bowel disease, and allergic asthma as well," wrote Analyst Sean Lee, who initiated coverage of the stock with a Buy rating and a US$11 per share price target. "Considering just the first two lead indications, we project soquelitinib to generate risk-adjusted revenues of US$801 million by 2034, including US$206 million from cancer and US$595 million from AD."

Lee continued, "Our bullish view on Corvus Pharmaceuticals is based on our positive perception of the following factors: (1) ITK is a promising target implicated in a wide variety of diseases; (2) soquelitinib is a first-in-class ITK inhibitor with a straightforward path to market; (3) additional indications with blockbuster potential; and (4) ciforadenant and mupadolimab provide additional opportunities."

Possible Approval Expected by 2027

Based on positive Phase 1b study results, Corvus initiated a pivotal Phase 3 study of soquelitinib for the treatment of relapsed/refractory peripheral T-cell lymphoma and other T cell lymphomas in October 2024, "which we believe could serve as a convincing proof-of-

concept for ITK," Lee wrote.

A total of 150 patients randomized 1:1 to either soquelitinib monotherapy or standard of care chemotherapy of either belinostat or pralatrexate are expected to enroll in the study.

"We currently expect the company to report topline results from this Phase 3 study by mid-2026, and if successful, we believe soquelitinib could be approved in the U.S. as early as

2027," Lee wrote. "Furthermore, the company is also conducting a Phase 1 study of soquelitinib in AD, a more commercially significant indication, and is expected to report topline results before mid-2025."

The analyst said Corvus is also expected to initiate a Phase 1 study of the drug for solid tumors in the first quarter of this year, with initial results expected by the end of the year.

2 Other Drug Candidates

Corvus is also developing two other drug candidates across multiple indications: ciforadenant, an adenosine A2A receptor inhibitor for the treatment of first-line renal cell carcinoma; and mupadolimab, an anti-CD73 antibody, as a treatment for relapsed/refractory non-small cell lung cancer, the analyst wrote.

"We expect the company to report topline results from the ongoing, investigator-led Phase 2 study of ciforadenant in RCC in 2025," he noted. "Currently, we expect ciforadenant and mupadolimab to reach the market in 2030 and 2032, respectively, and generate total risk-adjusted revenues of US$96 million by 2034."

Lee said the price target of US$11 is based on a risk-adjusted net present value (rNPV) analysis of projected future revenues from soquelitinib, ciforadenant, and mupadolimab, assuming an 11% discount rate and a 1% terminal growth rate.

"We derive an rNPV of US$1.2 billion for the products and add in net cash and cash equivalents of US$42 million to arrive at a 12-month price target of US$10.84 per diluted share, which we round to US$11, the analyst wrote.