BOSTON - Centessa Pharmaceuticals plc (NASDAQ:CNTA) reported new preclinical findings on ORX142, a novel drug candidate aimed at treating excessive daytime sleepiness (EDS) associated with various neurological and psychiatric disorders. The data, presented at the 27th Congress of the European Sleep Research Society (Sleep Europe 2024) in Seville, Spain, indicated that ORX142, an orexin receptor 2 agonist, significantly increased wakefulness in non-human primates at very low doses.
The study highlighted the drug's potency and selectivity in activating human orexin receptor 2, with an effective concentration (EC50) of 0.069 nM, and demonstrated more than 13,000-fold selectivity over the human orexin receptor 1. In the primate models, ORX142 at a dose of 0.03 mg/kg induced sustained wakefulness, suppressing both non-rapid eye movement (NREM) and rapid eye movement (REM) sleep, without showing significant pharmacological activity in selectivity and in vitro safety panels.
Saurabh Saha, MD, PhD, and CEO of Centessa, expressed optimism about the drug's potential, emphasizing its performance in highly predictive preclinical models. According to Saha, the company is advancing ORX142 through investigational new drug (IND)-enabling studies, underscoring the significant market opportunity for the treatment.
Centessa's orexin agonist program is developing a pipeline of potential treatments for sleep-wake disorders, including narcolepsy types 1 and 2 and idiopathic hypersomnia. ORX750, another drug candidate from the program, is currently in a Phase 1 clinical study.
The company, which focuses on discovering and developing transformative medicines for patients, has yet to receive approval from the FDA or any other regulatory authority for ORX750 and ORX142.
This article is based on a press release statement from Centessa Pharmaceuticals plc. The information presented is subject to further clinical investigation and regulatory review. Investors and interested parties are advised to follow the progress of these studies for a clearer understanding of the drug's efficacy and potential market impact.
In other recent news, Centessa Pharmaceuticals has been the subject of several significant developments. Morgan Stanley upgraded Centessa to Overweight from Equalweight, raising the price target to $26 from the previous $11, following the promising interim Phase 1 results of the company's ORX750 study. This move reflects the investment firm's heightened confidence in the stock's potential, largely due to the promising data from the early-stage clinical trial.
Centessa also initiated a $150 million public offering of American Depositary Shares, with financial institutions such as Goldman Sachs & Co. LLC and BMO Capital Markets serving as joint book-running managers. Furthermore, the company's ORX750 program for sleep disorders demonstrated a clean safety profile in Phase 1 trials, which led to positive ratings from investment banking firms Jefferies, BMO Capital, and Oppenheimer.
In line with these developments, Centessa plans to advance ORX750 into further clinical trials for narcolepsy types 1 and 2 and idiopathic hypersomnia, starting in the fourth quarter of 2024. The company's drug candidate ORX142 also shows promise in promoting wakefulness at low doses in non-human primates, according to recent preclinical studies. These developments underscore the company's ongoing efforts in the pharmaceutical industry.
InvestingPro Insights
As Centessa Pharmaceuticals (NASDAQ:CNTA) continues to focus on developing innovative treatments for sleep-wake disorders, investors are closely monitoring the company's financial health and market potential. According to recent data from InvestingPro, Centessa holds a market capitalization of $2 billion, reflecting significant investor interest in the company's research and development initiatives.
InvestingPro Tips reveal that analysts are optimistic about Centessa's future, expecting sales growth in the current year, which could be linked to the progress and potential success of drug candidates like ORX142 and ORX750. Furthermore, two analysts have revised their earnings estimates upwards for the upcoming period, indicating confidence in the company's direction. It's worth noting, however, that analysts do not anticipate the company to be profitable this year, which is not uncommon for biotech firms in the development stage.
In terms of financial metrics, Centessa's Price to Earnings (P/E) Ratio stands at -8.25, with an adjusted P/E Ratio for the last twelve months as of Q2 2024 at -12.76. This negative P/E ratio reflects the company's current lack of profitability, which is echoed by the InvestingPro Tip that Centessa has not been profitable over the last twelve months. Additionally, the company's Price to Book (P/B) ratio is 6.87, suggesting a high valuation relative to the company's book value, which could be indicative of the market's high expectations for future growth.
For investors seeking more detailed analysis and additional InvestingPro Tips, there are 11 more tips available on the Centessa Pharmaceuticals page at InvestingPro (https://www.investing.com/pro/CNTA), offering in-depth insights that could help inform investment decisions.
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