Corvus Pharmaceuticals: More Than A CD73 Sympathy Play

Summary

• Shares rose by 135% on Friday alone, but as of Wednesday have still lost half their value since 2017. Additionally, current enterprise value is still around $260 million.
• ESMO data release for AstraZeneca's COAST study in lung cancer has potentially validated CD73 drug class, of which Corvus possesses a differentiated candidate.
• Corvus' management team is highly experienced (ex Pharmacyclics), and for mupadolimab are striving to prove their hypothesis in viral associated cancers with wide-reaching implications.
• Not to be forgotten, there are other angles to the story including COVID optionality and ITK inhibitor CPI-818 in T cell lymphomas (big opportunity in China) & autoimmune diseases.
• Corvus is a buy. Key risks include disappointing clinical data (own or peer), competition, delays (pandemic related) and dilution.
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**This article was originally published for ROTY subscribers on September 18th, but has been updated where necessary. Despite the 85% gain since Friday's midday Flash Trade alert and 40% gain in our model account (cost average at closing price per our Transparency Rule), I continue to

Analyst’s Disclosure:I/we have a beneficial long position in the shares of CRVS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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