Berenberg starts Cerevel with "buy" on pipeline potential

Cerevel Therapeutics Holdings

31/03/2022 18:45

** Berenberg initiates coverage of Cerevel Therapeutics
 CERE.O  with a "buy" rating and $46 PT, citing the drug
developer's pipeline strength
    ** CERE shares rise 4.5 to $35.13 in afternoon trade
    ** Brokerage sees strong potential, especially for co's
experimental schizophrenia treatment, emraclidine, and for
darigabat, being developed for epilepsy and anxiety
    ** Says there is a large market opportunity for both the
drugs given a high unmet need; forecasts U.S. peak sales of $4.4
bln for darigabat and $2 bln for emraclidine 
    ** Highlights that physicians have become wary of
prescribing a widely-used class of anti-anxiety treatments
called benzodiazepines after the FDA in 2020 required a box
warning describing risks such as abuse, misuse and addiction for
all the drugs in the class
    ** Believes there is potential for darigabat to replace
benzodiazepines as the first choice for physicians to treat
anxiety disorder
    ** Stock up nearly 35% YTD, including session's gains

 (Reporting by Amruta Khandekar in Bengaluru)
 ((Amruta.Khandekar@thomsonreuters.com;))