Edison Investment Research initiates coverage of Cereno Scientific with a differentiated approach in cardiovascular diseases

Edison Investment Research has started its coverage on Cereno Scientific, highlighting its innovative approach in the treatment of cardiovascular diseases (CVD). This clinical-stage biotechnology company stands out for its focus on disease-modifying therapies and its collaboration with Abbott. Its flagship product, CS1, aims to alter the course of pulmonary arterial hypertension (PAH) through a delayed immediate-release formulation of valproic acid.

Cereno's preclinical candidates include CS014, for thrombosis prevention without increased risk of bleeding, and CS585, whose specific indication in CVD is yet to be determined. The year 2024 will mark a significant inflection point for Cereno with preliminary results from the Phase II study on CS1 and the anticipated entry of CS014 into the clinic. A valuation of SEK2.32bn is initiated, reflecting optimism for the potential of CS1 in PAH, with a planned launch in 2029 and estimated peak sales of around $2.1 billion.

By the end of the fiscal year 2023, Cereno Scientific had SEK87.1m in gross cash, with additional funds expected from a warrant conversion and committed loan, extending its financial resources until the second quarter of 2025. A partnership agreement for CS1 is anticipated for 2026.