Clementia Pharmaceuticals’ Long-Term Growth Potential Carries Near-Term Risks
Clementia’s palovarotene leads the field in changing the lives of patients with fibrodysplasia ossificans progressiva (FOP) and multiple osteochondromas (MO).
Despite mixed Phase 2 results in FOP, a more aggressive Phase 3 treatment protocol and encouraging data from Phase 2 Open Label increases likelihood of significant results.
Given multiple favorable clinical, market and regulatory factors, palovarotene is positioned to capture and retain the lion’s share of the FOP and MO markets for several years post-launch.
Upcoming IPO lockup period expiration on 1/29/2018 may place downwards pressure on stock price.
By V. Bartlett, J. Huang, C. Hsu
Note: Opinions presented in the below article may be speculative in nature, and readers should perform their own research before arriving at a decision to buy or sell.
Overall long hypothesis
Clementia Pharmaceuticals (CMTA) represents an attractive investment based on promising results for its lead asset, palovarotene, in fibrodysplasia ossificans progressiva (FOP). While the market in this ultra-rare disease is admittedly small, Clementia is poised to dominate the FOP and multiple osteochondromas (MO) markets (peak sales >$1B) in the near term (3-5 years). The company also has the potential to expand into markets with even larger opportunity, such as dry eye disease in the long term (5+ years).
Background on Clementia
Clementia Pharmaceuticals is a clinical-stage pharmaceutical company focused on developing therapies for rare bone disorders, such as FOP. Its lead candidate, palovarotene, is an oral RARγ agonist in Phase 3 trials for FOP and is also set to begin Phase 2 pediatric trials early this year for another rare bone disease, MO, also called hereditary multiple exostoses.
The company’s founder and CEO, Clarissa Dejardins, is a veteran biopharma founder and former CEO of Centre d’excellence en medicine personnalisee (CEPMED), a Montreal-based personalized medicine think tank. She began Clementia Pharmaceuticals in 2011 and since then has gathered a lean team of physicians, scientists and pharma veterans experienced in the rare disease space.