Capricor Therapeutics Inc (CAPR)

[Volcano]

This is still a speculative play. Even though we like the OLE data, Capricor is still a one-trick pony until the exosome platform advances further into clinical trials. It is also dealing with cutting-edge technologies.

However, Capricor just showed standout data with statistical significance on a tiny sample. This is only possible because the clinical impacts are robust. From our vantage point, we think this is approvable data. However, we are not the FDA. The main concern going forward is safety: is there something that will show up in a larger sample?

Capricor sits on a valuation just under $110M. It was ridiculously undervalued when its recent valuation sunk under $70M. The readers took us to task during the Covid Shutdown for not being more optimistic. We felt that the main event was always the DMD program but also asserted that HOPE-2 would not results in an accelerated approval.

Now the good data has arrived. The case for CAP-1002 is stronger. We now match the enthusiasm of our former critics, but many are gone. This inefficiency should give you pause. If you were enthusiastic before, you should be delirious today.

We also said CAPR remains a speculative play…but today we are amused. As my former business partner and CEO used to say: The data is the data.