CLDX Stock Slumps 11% – This Analyst Sees Nearly 90% Upside, Calls Phase 3 Trial Safety Concerns ‘Misplaced’

H.C. Wainwright called the Phase 3 results a “compelling” late-stage assessment of Barzolvolimab in a patient population with a significant unmet need.

• The brokerage raised the price target on Celldex to $64 from $42 and maintained a ‘Buy’ rating, according to The Fly.
• Celldex’s Phase 3 studies met their primary and all key secondary endpoints for Barzolvolimab in chronic spontaneous urticaria.
• The biotech firm plans to submit a BLA to the FDA in 2027.

Celldex Therapeutics (CLDX) received a major price target hike on Tuesday, despite the stock crashing nearly 20%, after its experimental treatment for a skin condition delivered positive results in two late-stage studies.

H.C. Wainwright raised the price target on Celldex to $64 from $42 and maintained a ‘Buy’ rating, according to The Fly. The updated target implies a nearly 90% upside from current levels.

Barzolvolimab Meets All Key Goals

Celldex said both Phase 3 Embarq-CSU1 and Embarq-CSU2 studies of Barzolvolimab met their primary and all key secondary endpoints at 12 weeks. The drug is being developed for the treatment of chronic spontaneous urticaria (CSU), a skin condition that causes recurring hives and swelling.

At Week 12, about 42% to 46% of patients receiving Barzolvolimab achieved a complete response, meaning they experienced no hives or itching, compared with roughly 9% to 13% of patients receiving placebo.

Results strengthened further by Week 24, with complete response rates reaching 54%. The studies enrolled 1,939 patients.

Celldex plans to file the Biologics License Application (BLA) with the FDA in 2027.

Despite the results, CLDX shares initially plunged nearly 20% before trimming losses. At the time of writing, the stock traded around 11% lower.

Why Did CLDX Stock Slump Despite Positive Data?

Despite the strong efficacy results, investors focused on the study’s safety data. Two cases were classified as probable Grade 4 anaphylaxis, a severe and potentially life-threatening allergic reaction to the drug. Celldex noted that one occurred after a placebo dose.

H.C. Wainwright said the stock fell due to “misplaced focus/correction to announced safety metrics,” arguing that the Phase 3 results provide a “compelling, well-powered, controlled late-stage assessment” of Barzolvolimab in a patient population with significant unmet need.

Retail Split On Safety Data

Despite the stock tanking, retail sentiment surrounding CLDX on Stocktwits flipped to ‘extremely bullish’ from ‘neutral’ over the past 24 hours, amid ‘extremely high’ message volumes.

One user called the selloff an “overreaction.”

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However, another user believes it’s a “classic sell the news event.”

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The stock has gained more than 24% so far in 2026.

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