NEW YORK, Feb. 13, 2023 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has initiated coverage of Context Therapeutics Inc. (NASDAQ: CNTX). The in-depth 26-page initiation report includes detailed information on the Context Therapeutics’ business model, services, industry, valuation, management, and risks.
The full research report is available here. Highlights from the report include:
- Promising Pipeline of Novel Systemic Therapies: Context Therapeutics has built a promising pipeline of novel systemic therapies for multiple solid cancer indications. The clinical stage candidate, onapristone extended-release (ONA-XR), is a complete PR antagonist that targets cancer indications where PR-mediated signaling contributes to resistance and disease progression. ONA-XR is being evaluated in combination with anti-estrogen drugs in hormone receptor-positive metastatic breast cancer and endometrial cancer. The extended-release formulation and pure antagonist properties of onapristone are expected to provide a balance between efficacy and toxicity, while overcoming drug resistance. The follow-on pipeline candidate CTIM-76 is a Claudin-6 (CLDN6) x CD3 bispecific antibody currently being evaluated in IND-enabling studies with an eventual goal of treating CLDN6-expressing cancers. CLDN6, an oncofetal tight junction protein, is highly expressed in different cancer cells, particularly testicular and ovarian, but lacks expression in healthy cells. Other clinical trial candidates such as BioNTech’s CAR-T Candidate BNT211 have provided encouraging evidence of CLDN6 as an effective therapeutic target. The bispecific antibody approach of CTIM-76, accompanied by an ideal target (CLDN6), has shown high specificity and selectivity with optimal T-cell lysis (cancer cell apoptosis) and minimal off target inflammatory response in multiple in-vitro studies. We believe both candidates are being developed on a strong scientific foundation and have the potential to bring new drugs to market.
- Encouraging Clinical Early-Stage Results: ONA-XR is currently being evaluated in combination with antiestrogen drug fulvestrant and recently FDA-approved only oral selective estrogen receptor degrader (SERD) elacestrant in patients with HR+, HER2- metastatic breast cancer for 2L/3L treatment. Preliminary results from the SMILE trial (ONA-XR + fulvestrant) have shown promising efficacy and tolerability. The ongoing SMILE trial found a 4-month progression-free survival rate of 44% (preliminary results) in patients with ER+, HER2- locally advanced or metastatic breast cancer. The ELONA trial (ONA-XR + elacestrant) has recently enrolled its first patient in Phase 1b/2 clinical trial. The complete PR antagonist is also being evaluated for PR+ recurrent endometrial cancer in combination with anastrozole (aromatase inhibitors) in Phase 2 clinical trial (OATH study). The ongoing OATH trial found a 4-month progression-free survival rate of 77% and a 12-month rate of 33% (preliminary results), with a favorable safety and tolerability profile. Even though a head-to-head comparison is not statistically perfect, ONA-XR’s clinical results are encouraging when analyzed against standard of care chemotherapy or antiestrogen hormone therapy. The second candidate, CTIM-76, has yet to undergo clinical trials, but early results from cell-based assays are promising. The drug has demonstrated high selectivity and potency, being over 1,000 times more selective for CLDN6 compared to CLDN9 and about 28 times more effective than a conventional bispecific T-cell engager molecule. Although the results are not conclusive or all-encompassing, they suggest potential positive outcomes and significant potential for further development.
- Strong Scientific Background, Large Market, and Sound Financial Footing Supporting Valuation: ONA-XR and CTIM-76 represent significant global opportunities and an unmet need in the treatment of solid tumors. Both medications are being progressed through the pipeline, with multiple clinical and pre-clinical data readouts expected to be released in 2023. The pipeline progress is further supported by a sound financial position as exhibited by the company having zero-debt and cash runway into Q1 2024. We have valued the company using a risk-adjusted DCF methodology, assuming a probability of success of 15% and a discount rate of 12.5%, yielding a value of $93.82 million or $5.88 per-share contingent on successful execution by the company.
About Context Therapeutics Inc.
Context Therapeutics is a clinical-stage biopharmaceutical company focused on developing treatments for female cancers in the U.S. Its lead product candidate is a selective antagonist of the progesterone receptor; the company is also developing a CLDN6xCD3 bispecific antibody for redirecting T-cell-mediated lysis towards CLDN6 expressing cancer cells.
For more information, visit https://www.contexttherapeutics.com/
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization equities. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.
For more information, visit https://www.diamondequityresearch.com
Disclosures:
Diamond Equity Research LLC is being compensated by Context Therapeutics Inc. for producing research materials regarding Context Therapeutics Inc, and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however, the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual or semi-annual research engagement. As of 02/13/2023, the issuer had paid us $35,000 for our services, which commenced 01/19/23 and is billed annually. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 02/13/2023 but has committed to paying $1,500 for an investment dinner. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for Context Therapeutics Inc.
Contact:
Diamond Equity Research
research@diamondequityresearch.com
