Corbus Pharmaceuticals (NASDAQ:CRBP) Holdings, Inc. (NASDAQ:CRBP), a biopharmaceutical company, disclosed on Friday that Anne Altmeyer Ph.D., a board member, has initiated a prearranged trading plan for her shares in the company. Under the Rule 10b5-1 plan, Dr. Altmeyer has scheduled the sale of up to 2,452 shares of Corbus's common stock, starting February 13, 2025. The plan, which provides an affirmative defense against insider trading, is set to expire on December 31, 2025.
This trading plan allows Dr. Altmeyer to sell her shares at predetermined times and prices, providing a systematic method of stock disposal. Such plans are commonly used by corporate insiders to sell their shares without facing potential legal issues related to insider trading, as they demonstrate that the trades were planned ahead of any non-public information that could affect the stock price.
The establishment of this trading plan by a Corbus Pharmaceuticals director follows standard financial practices for individuals with insider access to potentially market-moving information. It ensures that any transactions are executed in accordance with the Securities and Exchange Commission (SEC) rules, which aim to prevent insider trading and promote fair dealing in the market.
Corbus Pharmaceuticals, headquartered in Norwood, Massachusetts, specializes in the development of pharmaceutical preparations. The company's filing with the SEC indicates that this move by Dr. Altmeyer is in line with legal and regulatory frameworks governing the trading activities of corporate insiders.
In other recent news, Corbus Pharmaceuticals reported strong third-quarter results, with an ending cash total of $159 million, projected to fund operations into the second half of 2027. The company's ADC program, focusing on the drug CRB-701, is expected to provide a data update in the first quarter of 2025. Additionally, Corbus has completed patient enrollment for the dose escalation trial of CRB-701, with data from at least 12 patients expected to be presented early next year.
Oppenheimer has maintained its Outperform rating and $60.00 price target for Corbus, even as B.Riley reduced its price target to $40 from $85, maintaining a Buy rating. Mizuho (NYSE:MFG) Securities also maintained its Outperform rating, with a price target set at $74.00, expressing confidence in the company's advanced asset, CRB-701.
The company's drug, CRB-913, which targets CB1r, is said to be approximately ten times more CNS restricted than competitor Novo Nordisk (NYSE:NVO)'s monlunabant. An Investigational New Drug application for CRB-913 is expected to be filed by Corbus Pharmaceuticals later this year.
Despite a significant downturn in the company's shares following the release of underwhelming trial results from Novo Nordisk's drug monlunabant, analysts remain optimistic.
InvestingPro Insights
To provide additional context to Dr. Anne Altmeyer's trading plan for Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP), it's worth considering some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Corbus Pharmaceuticals has a market capitalization of $201.08 million. The company's stock has shown significant volatility, with a one-year price total return of 289.14% as of the most recent data. This aligns with an InvestingPro Tip indicating that the stock "generally trades with high price volatility."
Despite the impressive one-year return, it's important to note that the company's financial health presents some challenges. An InvestingPro Tip highlights that Corbus "suffers from weak gross profit margins," which is reflected in the negative gross profit of -$30.41 million for the last twelve months as of Q3 2024. Additionally, the company was not profitable over this period, with a negative EBITDA of -$45.62 million.
On a positive note, InvestingPro Tips reveal that Corbus "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations," suggesting a relatively stable short-term financial position despite the lack of profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Corbus Pharmaceuticals, providing a deeper understanding of the company's financial situation and market performance.
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