Shares of Corbus Pharmaceuticals (NASDAQ: CRBP) have already experienced a meteoric rise of over 300% year-to-date. This is thanks to fresh news released two Fridays ago, on January 26. The company released early but promising data from its Phase 1 trial involving cancer patients treated with its antibody-drug conjugate CRB-701.

This particular drug conjugate stands among three pivotal drugs currently undergoing clinical trial phases, but its progress has notably accelerated in terms of anticipated approval prospects, supported by these promising results. 

With the recent groundbreaking news and the remarkable surge in price, trading volume, and overall company valuation, let's delve deeper into this recent standout performer to assess whether it represents a potential investment opportunity or if it might be experiencing an overvaluation.

What is Corbus Pharmaceuticals?

Corbus Pharmaceuticals Holdings is a biopharmaceutical company dedicated to combating severe illnesses. The company is actively developing several products, including CRB-701, an antibody-drug conjugate (ADC) designed to target Nectin-4 expression on cancer cells, currently undergoing Phase I clinical trials. 

Additionally, CRB-601, an anti-integrin monoclonal antibody, is being developed to block the activation of TGFß expressed on cancer cells to treat solid tumors. Moreover, CRB-913, an endocannabinoid small molecule drug, is being developed for treating obesity and related metabolic diseases.

The company operates under a licensing agreement with Jenrin Discovery, LLC, enabling the development and commercialization of licensed products, including the Jenrin library, which consists of approximately 600 compounds and multiple issued and pending patent filings.

The company’s stock has an average daily volume of 2.25 million shares and a market capitalization of approximately $118 million. Thanks to the recent catalyst and price action, the stock is now up 335% over the previous month and trading near the high-end of its 52-week range. 

Recent developments spark a turnaround for the company

For Corbus, these results couldn't have come at a better time. Despite a lackluster performance in its long-term chart, helped mainly by pandemic-induced optimism, the company now finds itself on the cusp of a potential resurgence. The absence of severe safety events coupled with strong efficacy signals from CRB-701 has reignited investor interest, providing a glimmer of hope for those who've weathered the storm with this biotech player.

Corbus' CEO has emphasized the potential superiority of CRB-701 in treating cervical cancer tumors compared to existing options, hinting at meaningful benefits for both patients and the company. This narrative has captivated the market's attention, positioning CRBP stock as one to watch closely in the months ahead as further trials unfold.

In parallel with this surge, adopting a cautious approach is imperative, recognizing the inherent risks associated with investing in clinical-stage biotech companies. While the recent developments signal a promising trajectory for Corbus Pharmaceuticals, prudent risk management remains paramount amidst the potential for short-term volatility in the stock.

Analysts are bullish, and insiders are buying

Analysts have maintained a bullish outlook on the stock for several months since coverage commenced, consistently assigning it a Buy rating. Currently, two analyst ratings support this sentiment. Following the recent catalyst, analysts at Oppenheimer took proactive measures by substantially increasing their target for CRBP. Oppenheimer analysts raised their target from $20 to $51, anticipating a remarkable 123.68% upside potential at the time of the report.

In addition to the optimistic views shared by analysts, recent insider activity further signals positive prospects for the company and its investors. Notably, in the past twelve months, no insider selling has been recorded. On the contrary, insider purchases totaling over $9 million have been documented during this period. That purchasing occurred following the recent news on January 26, with Cormorant Asset Management, LP, a significant company shareholder, purchasing 282,632 shares at an average price of $32.24. This transaction amounted to a total investment of $9,112,055.68.