The top-line results from Cardiol Therapeutics' (CRDL:TSX; CRDL:NASDAQ) ARCHER study for Acute Myocarditis are quite promising, wrote Roth Capital Partners Analyst Jason Wittes in an updated research note on August 6.
The primary endpoint of left ventricular (LV) extracellular volume (ECV) showed a notable improvement (p = 0.0538) in favor of CardiolRx over placebo, just missing statistical significance, wrote the analyst, who rated the stock a Buy with a US$10 price target, a more than 80% increase from the US$1.11 per share he quoted at the time of writing.
"Our 12-month price target is US$10, based on a sum-of-the-parts valuation using 3x sales multiple on risk-adjusted peak sales and 9% WACC, consistent with industry norms," Wittes wrote. "We attribute US$9 to CardiolRx for recurrent pericarditis (assumes US$609M sales in 2033, 60% probability of success), US$1 to CardiolRx (assumes US$132 million sales in 2033, 40% probability of success) for acute myocarditis, and ~US$0 to forward-year cash."
Analyst: Results Strong Enough to Attract Larger Partner
Wittes noted the results were encouraging for a larger trial, as no other study has demonstrated improvement in this area so far. The company did not achieve the other independent primary endpoint of improvement in Global Longitudinal Strain, a measure of heart output, which was anticipated given the relatively healthy condition of patients with preserved left ventricle function.
On the pre-specified exploratory endpoint of left ventricular mass, there was a significant reduction, indicating efficacy in acute myocarditis patients and having major implications for heart failure.
Wittes said Roth believes these results are strong enough to attract a larger partner for a more extensive heart failure trial and to support a larger pivotal trial for acute myocarditis.
The complete ARCHER trial data have been submitted for presentation at a major cardiology conference, the analyst said.
| Want to be the first to know about interesting Biotechnology / Pharmaceuticals investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
- This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.
For additional disclosures, please click here.
Disclosures for Roth Capital Partners, Cardiol Therapeutics Inc, August 6, 2025:
Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has received compensation for investment banking services from Cardiol Therapeutics, Inc.
Shares of Cardiol Therapeutics, Inc. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
Shares of Cardiol Therapeutics, Inc., (CRDL) may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
ROTH Capital Partners, LLC and its affiliates expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2025. Member: FINRA/SIPC.
