Celldex initiated with an Overweight at Morgan Stanley

Morgan Stanley initiated coverage of Celldex (CLDX) with an Overweight rating and $46 price target Celldex is developing antibodies for inflammatory conditions and its lead candidate is barzolvolimab is capable of inducing profound reductions in mast cells, the analyst tells investors in a research note. The firm says that in Phase 2 studies of chronic urticaria, barzolvolimab showed a “potentially market-leading efficacy profile with impressive disease control observed irrespective of prior treatment.” However, the stock sits 50% below its one-year highs as side effects, that are not unique to barzolvolimab, and the increasingly competitive urticaria drug development landscape have weighed on shares, contends Morgan Stanley.