COCP - Cocrystal Pharma Inc. (COCP) - The High Unmet Need Persists in Influenza

A late-stage influenza asset development is halted. The Janssen Pharmaceutical announced a strategic decision to discontinue the development of pimodivir, a Phase 3 clinical asset. The study results showed that pimodivir in combination with the standard of care (SOC) was very unlikely to demonstrate improved benefit in hospitalized patients with influenza A compared to SOC treatment alone. The study in both hospitalized patients and outpatients with influenza A was halted.What does it mean? Cocrystal has two influenza programs: i) CC-42344 in influenza A, and ii) influenza A/B program in collaboration with Merck. CC-42344, influenza A PB2 inhibitor, is an investigational new drug (IND)-enabling stage. Cocrystal’s influenza programs have a large market potential (the worldwide (WW) sales of influenza drugs in the U.S. is expected to reach over $2.5 billion in 2026, based on Evaluate Pharma estimates). The high unmet need in the market persists with the recent news.Reiterating Outperform rating. Cocrystal’s influenza program is still at an early stage of development. While the news is disappointing for the field, molecular, mechanistic, and clinical data from pimodivir could shed light on the early-stage assets. We think meaningful preclinical data and clinical advancement of the influenza virus, norovirus, and coronavirus programs would generate additional value for the shares. The company raised $17.2 million in equity in August 2020. We think liquid capital provides optionality for the advancement of pipeline assets. We are reiterating our Outperform rating and $5 price target.Read More >>