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What's in the Cards for Corbus (CRBP) This Earnings Season?

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Corbus Pharmaceuticals Holdings, Inc. (CRBP - Free Report) is scheduled to release first-quarter 2019 results on May 9, 2019.

In the last reported quarter, the company incurred loss that was wider than the Zacks Consensus Estimate. Moreover, Corbus missed earnings estimates in the trailing four quarters, the average negative earnings surprise being 56.92%.

Let’s see how things are shaping up prior to the announcement of the upcoming first-quarter 2019 results.

Factors Likely to Impact Q1 Results

Corbus is a clinical-stage drug development company, focused on treating inflammatory and fibrotic diseases through the endocannabinoid system (“ECS”) pathways.

The company’s lead product, lenabasum, is a novel synthetic, oral, endocannabinoid drug designed to resolve chronic inflammation and fibrotic processes. The candidate is being developed to treat four life-threatening diseases — systemic sclerosis (SSc), cystic fibrosis (CF), dermatomyositis (DM) and systemic lupus erythematosus (SLE).

Corbus completed enrollment in the phase III RESOLVE-1 study of lenabasum on SSc in May 2019 and expects to report top-line results in 2020. 

Enrollment and dosing are ongoing in a phase IIb study of lenabasum for the treatment of CF and the company expects to report top-line data from the study in 2020. 

In December 2018, it initiated the phase III DETERMINE study to evaluate the efficacy and safety of lenabasum for the treatment of DM. We expect more updates on this study in the first-quarter conference call.

The company is also enrolling and dosing patients in a phase II study of lenabasum for the treatment of SLE

It should provide updates on these studies of lenabasum in the first quarter of 2019.

Apart from these studies, investors’ focus will be on other pipeline updates when Corbus reports first-quarter 2019 results.

What Does the Zacks Model Unveil?

Our proven model does not conclusively show an earnings beat for Corbus in the to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. But that is not the case here, as you will see below.

Earnings ESP: Corbus has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently has a Zacks Rank #3, which increases the predictive power of ESP. However, we need to have a positive Earnings ESP to be confident of an earnings beat.

Note that Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement are best avoided.

Stocks That Warrant a Look

Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Horizon Pharma plc (HZNP - Free Report) is scheduled to report first-quarter 2019 results on May 8. The company has an Earnings ESP of +25.00% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Inovio Pharmaceuticals, Inc. (INO - Free Report) is scheduled to report first-quarter 2019 results on May 9. The company has an Earnings ESP of +13.79% and a Zacks Rank of 3.

Genmab A/S (GNMSF - Free Report) is scheduled to report first-quarter 2019 results on May 8. The company has an Earnings ESP of +80.95% and a Zacks Rank of 1.

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