3. Capricor Therapeutics, Inc. (NASDAQ:CAPR)
Average Price Target Upside: 291.96%
Number of Hedge Fund Holders: 6
One of the best Russell 2000 stocks, Capricor Therapeutics, Inc. (NASDAQ:CAPR) is a biotechnology company dedicated to developing innovative cell and exosome-based therapies. They are aimed at treating and preventing muscular diseases and other select conditions.
At the heart of its efforts is deramiocel (CAP-1002), an allogeneic cell therapy currently advancing through Phase 3 clinical trials for Duchenne muscular dystrophy (DMD). The groundbreaking therapy harnesses specialized cells sourced from healthy human heart tissue, which have demonstrated significant potential in repairing damaged muscle and improving heart function. The cells support the immune system and help minimize scar tissue formation, which promotes healing in both cardiac and skeletal muscles.
The ongoing Phase 3 trials for deramiocel are critical as they seek to validate the therapy’s safety and eficacy for patients suffering from DMD. Previous studies have already indicated that this treatment can substantially slow the progression of muscle deterioration and improve cardiovascular health over time.
The positive data could play a crucial role in securing regulatory approval and offering a much-needed solution for a disease that currently lacks effective treatments for its cardiac complications.
In addition to deramiocel, Capricor (NASDAQ:CAPR) is exploring its exosome technology as a next-generation therapeutic platform. The technology aims to create exosomes capable of delivering nucleic acids and proteins to combat a range of diseases.
The stock is a Buy as per the coverage of 5 analysts. As of September 27, the average price target of $39.00 represents an upside of 291.96% to the stock’s current price.
On September 24, the company announced its plans to file a Biologics License Application (BLA) with the U.S. Food and Drug Administration, utilizing existing data related to cardiac health and natural history for patients diagnosed with DMD cardiomyopathy.
It is also planning a post-approval expansion to include treatment for DMD skeletal muscle myopathy. By combining trial cohorts for a more comprehensive study and delaying the unblinding of specific data, the company shows its commitment to expediting a novel treatment in a space with significant unmet needs.
Recent analyst activity has further boosted confidence in its prospects. On September 25, Oppenheimer raised the price target on Capricor (NASDAQ:CAPR) to $43 from $15 and kept an Outperform rating.
It came after the favorable regulatory update and suggests that deramiocel is on a well-defined path toward FDA approval by the latter half of 2025 for addressing cardiomyopathy associated with DMD. The firm expects high demand for this first-of-its-kind therapy.
6 hedge funds tracked by Insider Monkey held positions in Capricor (NASDAQ:CAPR) at a stake value of $4.156 million in Q2. Millennium Management has increased its stake in the company by 64% to 479,510 shares worth $2.287 million and is the most significant shareholder, as of the second quarter.
