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Here's Why You May Invest in Cardiol Therapeutics (CRDL) Stock

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Cardiol Therapeutics (CRDL - Free Report) is a Canada-based company making rapid progress with the development of CardiolRx (cannabidiol) oral solution, its lead drug candidate for the treatment of inflammation and fibrosis in heart disease.

CardiolRx is being evaluated in phase II studies in two diseases affecting the heart — recurrent pericarditis and acute myocarditis. Heart disease is the leading cause of death worldwide. Recurrent pericarditis and acute myocarditis are two debilitating forms of inflammatory heart disease that affects a younger age demographic. The currently available medicines are unable to treat the disease satisfactorily, thereby creating a need for better therapies.

It has been observed that cannabidiol inhibits activation of the inflammasome pathway, which is involved in the development and progression of inflammation and fibrosis in the heart. If developed successfully, CardiolRx has to potential to become an important new therapy for acute myocarditis, recurrent pericarditis and other heart diseases.

The stock of Cardiol Therapeutics has risen 74.6% year to date against a decrease of 8.2% for the industry.

Patient enrollment in the phase II ARCHER study in acute myocarditis is expected to be completed in the fourth quarter of 2024, six months ahead of schedule. Data presented at the American Heart Association demonstrated CardiolRx’s ability to confer cardioprotective effects in a model of recurrent pericarditis. 

The company also has a strong cash position, which it believes is sufficient to fund operations into 2026.

Cardiol Therapeutics has a Zacks Rank #2 (Buy). Estimates for Cardiol Therapeutics’ 2023 loss per share have narrowed from 41 cents to 36 cents per share over the past 60 days. Estimates for 2024 have narrowed from a loss of 24 cents per share to a loss of 21 cents per share over the same timeframe.

Other Stocks to Consider

Some other top-ranked drug companies worth considering are Aurinia Pharmaceuticals (AUPH - Free Report) , Alpine Immune Sciences and Corcept Therapeutics (CORT - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, the loss per share estimate for Aurinia Pharmaceuticals for 2023 has narrowed from 71 cents per share to 58 cents per share, while that for 2024 has narrowed from 43 cents to 28 cents. Year to date, shares of Aurinia Pharmaceuticals have gained 89.1%.

Earnings of Aurinia Pharmaceuticals beat estimates in all the last four quarters, delivering an earnings surprise of 45.61% on average.

Alpine’s stock has gained 62.3% so far this year. In the past 60 days, estimates for Alpine’s 2023 loss per share have narrowed from $1.43 to $1.18, while those for 2024 have improved from a loss of $1.73 to a loss of $1.47 per share.

ALPN’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average negative surprise of 79.65%.

In the past 60 days, the Zacks Consensus Estimate for Corcept’s earnings has increased from 62 cents per share to 78 cents for 2023. The bottom-line estimate has also improved from 61 cents to 83 cents for 2024 during the same time frame. Shares of the company have rallied 59.8% year to date.

CORT’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 6.99%.


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