Shares in Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP) broke out in style Wednesday from their recent flag formation, adding 26.35% to close at $8.87.
The stock, which had been locked in a sustained advance that began at $3.00 and stalled just under $8.00, had thereafter been correcting within the aforesaid flag pattern.
However, on Wednesday, analyst action drove the stock higher, with investors trading as much as 13.42 million shares.
Corbus Pharma is a clinical stage drug development company developing treatments for rare, chronic and serious inflammatory and fibrotic diseases.
Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP) boosted by analysts at Cantor Fitzgerald
On Tuesday, analysts at Cantor Fitzgerald initiated coverage on Corbus with a Buy rating and a price target of $17.00
In support of their thesis, Cantor Fitzgerald said the company will benefit from its lead candidate Resunab, a therapy for chronic inflammation, on which it will present data next month.
Resunab has been accorded Orphan Drug designation for systemic sclerosis, as well as Fast Track and Orphan Drug designation for cystic fibrosis.
If successful, the analysts said that Resunab would be protected from January competition into 2033.
Corbus Pharma CEO Dr Yuval Cohen said recently that expected the drug to be on the market by 2021, or even earlier.
Other factors that can prove bullish for the stock include initial efficacy data expected on a clutch of new orphan drugs by the second half of 2017.
Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP) has a technical target of $12.00
The breakout from the flag, and the size of the immediately preceding advance imply that the stock could reach as high as $12.00. The flag is a reasonably reliable chart pattern.
Adding credibility to the upside is the high volume at the time of the breakout as well as the opening gap.