Context Therapeutics: HC Wainwright Downgrades to Buy with $4 PT.

Context Therapeutics: HC Wainwright Downgrades to Buy with $4 PT.

Context Therapeutics Inc. (NASDAQ: CTXS) faced a significant setback as HC Wainwright downgraded the stock to 'Buy' with a new price target of $4.00. The downgrade comes after the company's Phase 2b trial of repibresib gel in nonsegmental vitiligo failed to meet both primary and secondary endpoints. The trial, which enrolled 177 participants, was a randomized, double-blind, vehicle-controlled study conducted at 45 sites across North America.

The primary endpoint, defined as the proportion of patients achieving at least a 50% improvement in the Facial Vitiligo Area Scoring Index (F-VASI50) at week 24, was not met. The trial also missed a key secondary endpoint (F-VASI75). However, the highest dose group showed a nominally statistically significant treatment effect in percent change from baseline (CFB) in both F-VASI and T-VASI scores at week 24. The company stated that the outcome was likely affected by a high vehicle effect and a higher-than-expected dropout rate in the active arms.

In response to the trial results, Vyne Therapeutics has discontinued treatment in the extension phase and will terminate the trial. The company reported approximately $39.6 million in cash, cash equivalents, and investments as of June 30. The trial also resulted in more frequent treatment-emergent adverse events (TEAEs), with application site pain being the most common. Eight subjects in the treatment group discontinued due to AEs, compared to none in the vehicle group.

Despite the setback, CEO David Domzalski remains confident in the potential of the company's InhiBET BET inhibitor platform. Retail sentiment on Stocktwits was 'extremely bullish' late Wednesday, with some investors pointing to the company's sufficient cash position and the underlying science of the trial.

The stock has declined 88.1% so far in 2025, but some investors believe the recent selloff could be part of the biotech cycle and that the company could see a comeback. The downgrade by HC Wainwright suggests that while the trial results were disappointing, the firm remains optimistic about the company's prospects.

[1] https://stocktwits.com/news-articles/markets/equity/vyne-hit-with-downgrades-after-repibresib-misses-endpoints-in-vitiligo-trial-traders-still-eye-rebound/chohuEKR5Co
[2] https://www.marketbeat.com/instant-alerts/biogen-nasdaqbiib-stock-price-expected-to-rise-hc-wainwright-analyst-says-2025-08-01/