Biren Amin, an analyst from Piper Sandler, has initiated a new Buy rating on Centessa Pharmaceuticals (CNTA).
Biren Amin has given his Buy rating due to a combination of factors that highlight the promising potential of Centessa Pharmaceuticals. The company is developing a multi-asset orexin receptor 2 (OX2R) agonist franchise, which targets excessive daytime sleepiness and related symptoms in neurodegenerative and neuropsychiatric disorders. Their lead candidate, ORX750, is currently in Phase 2a trials for narcolepsy and idiopathic hypersomnia, with results anticipated soon. The potential of ORX750 to become a best-in-class agent is supported by its favorable tolerability and dosing flexibility, as demonstrated in earlier trials with sleep-deprived volunteers.
Biren Amin’s rating is also influenced by the broader applicability of orexin agonists beyond sleep disorders, with potential uses in conditions like Parkinson’s disease, multiple sclerosis, and depression. Centessa’s pipeline includes additional molecules such as ORX142 and ORX489, which offer further opportunities in the neuropsych segment. These developments, coupled with the upcoming Phase 2a data, represent significant milestones that could enhance the company’s market position and provide expansion opportunities, thereby justifying the Buy rating.
In another report released on March 24, BMO Capital also maintained a Buy rating on the stock with a $35.00 price target.