2023-10-26 14:00:08 ET
Shares of Centessa Pharmaceuticals ( NASDAQ: CNTA ) rose as much as 19.4% on Thursday after analysts at Morgan Stanley upgraded the stock to "equal weight" from "underweight," citing encouraging preclinical data for ORX 750 at the World Sleep Congress.
ORX 750 is Centessa's lead candidate and potential treatment for narcolepsy and sleep disorders.
"Following updates from competing programs, we view the ORX750 preclinical data as supportive of a best-in-class profile... While it appears that competing programs may be more advanced in development, we believe the data from World Sleep suggests ORX750 could be best-in-class," analysts at Morgan Stanley wrote in an October 25 report.
Morgan Stanley also hiked PT on CNTA to $8 from $4 and now forecasts the probability of success for ORX750 at 35%, up from 15%.
CNTA stock has more than doubled YTD as of last close. The S&P 500 Health Care Sector Index is down 7.1% so far this year
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Morgan Stanley impressed with Centessa's lead candidate data at World Sleep Congress