Shares in Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP) slumped 22.17% to $6.95 on Monday in what appears to be an intensifying correction after the shares made a high of $10.78 on October 10.
About 2.19 million shares were traded, twice the normal volume of 1.11 million shares.
Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP) completed Phase 2 Study of Resunab
Corbus announced October 13 the completion of the Phase 2 Study of Resunab for Systemic Sclerosis.
Top line data from the multi-center, double-blind, randomized, placebo-controlled Phase 2 study, which was conducted at nine centers in the United States, will be reported in the fourth quarter of 2016.
Resunab was granted Orphan Drug Designation and Fast Track status for the treatment of systemic sclerosis by the U.S. Food and Drug Administration in 2015.
Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP) analyst ratings
Last month, JMP Securities initiated coverage with a Market Outperform rating and a $6 price target.
On October 5, analysts at Cantor Fitzgerald initiated coverage of Corbus with a Buy rating and a price target of $17.
According to Cantor Fitzgerald, resunab has shown encouraging results and the company’s patents (applied for) could afford production from generic versions until 2033. (Preclinical and Phase 1 studies have shown Resunab to have a favorable safety, tolerability and pharmacokinetic profile.)
The company is also expected to benefit from the development of three orphan drugs that could have a market potential as high as $3 billion. Initial efficacy trial data for these drugs is expected to be available by the second half of 2017.
Technically, the bullish uptrend in Corbus remains intact. However, there could concern if the price continues to head south and breaks through the previous low of $5.90 and the 50-day moving average, which is around that same level.