k breeze

Aspiring sea pirate

[In Honour Of Thomas W Phelps @HOThomasWPhelps]

$CRVS - Underappreciated Asset, Angel Pharma, May Unlock Significant Value for Corvus

Corvus effectively gets 2 shots on goal from the same drug thesis:

• $CRVS owns #soquelitinib ex-Greater China
• Angel owns Greater China rights
• $CRVS owns ~half of Angel
If #soquelitinib wins, Corvus can benefit multiple ways.

The upside is for $CRVS is leveraged but without using debt.

Corvus currently carries Angel at only ~$15M on its balance sheet.

But if Angel completes the Hong Kong IPO in 2027 that Mizuho says it is considering, the hidden value could become very visible.

Illustrative example:
• Angel IPO valuation: $600M
• $CRVS post-IPO ownership: ~35–40%
• $CRVS stake value: ~$210–240M
vs just ~$15M carrying value today is potentially a massive NAV unlock.

But the true value may be that an Angel IPO could create non-dilutive financing for $CRVS in several ways:

Angel, by raising its own capital can fund their trials internally, but Corvus as partner gets benefit of all their data for its own US regulatory filings and also will benefit from the value creation for Angel's pipeline as its major shareholder.

Additionally, Corvus could have the option of potentially sell a SMALL portion of its Angel stake to unlock some value while still retaining large Angel ownership:

For example
• monetise $30–40M
• issue ZERO new $CRVS shares
• still retain roughly one-third of Angel
• keep potentially $150–200M+ of remaining Angel equity

Corvus could also have the option to monetise more later if Angel rerates further as pipeline develops and drugs advance. So Angel could effectively become a somewhat of a second balance sheet / financing reservoir for Corvus.

The structure is unusually attractive and unique among small biotechs, I can not think of another biotech that has this structure or opportunity at this size:

If #soquelitinib + ITK inhibitor program succeeds
CRVS core value ↑
Angel value ↑
CRVS Angel stake ↑
potential financing capacity ↑

Downside is limited to the modest equity investment $15M, while upside could be hundreds of millions of value for Corvus.

If Angel China IPO happens in 2027 and #soquelitinib keeps delivering, the market may stop seeing Angel as a ~$15M accounting line item and start seeing it as a major strategic asset embedded inside $CRVS.

Again this is a novel corporate structure/strategy that is unique to Corvus among its peers and currently it is getting little value from the market, but with data over the coming months and quarters it may be on verge of a significant re-rating event for both Corvus and Angel.

[Mostafa Hussein @TFONE21]

Very good report this quarter. The China (Angel) AtD is very exciting! $CRVS

[Lance Corporate @lance_corporate]

Guy in front of me on the plane yesterday, probably 6'5", 280, meathead, covered in tats. Four-hour flight. Scrolling through the seatback TV, he finally picks Sandlot. Watches the entire thing, doesn't smile or look away once.

The credits roll, The End.

Bro presses "Play Again." Watches Sandlot again. The Jet steals home (for the second time) right as the seatbelt sign goes off at the arrival gate. No phone, no e-mail, no music. Just back-to-back Sandlots from ATL to Boise.

Unbelievable energy.

[k breeze @i_am_tyred]

@DrNiravPandya LeBron 3*

[k breeze @i_am_tyred]

@BleacherReport @mcten 🤡

[Roberto Shenanigans @Rob_Shenanigans]

Is there a better story this season than the glow-up of Austin Hedges?

Here's where Hedgey ranks among 27 American League catchers with 100 plate appearances:

• AVG: 4th (.288)
• OBP: 3rd (.348)
• SLG: 8th (.416)
• wRC+: 6th (117)
• WAR: 10th (0.9)

[k breeze @i_am_tyred]

@ImFromCle Delete

[k breeze @i_am_tyred]

@overton_news He dropped the Henry Ford push button card on Maher

[k breeze @i_am_tyred]

@ESPNCleveland @TheSteinLine No

[k breeze @i_am_tyred]

@Investorclimber Long way to go. The rollercoaster now means nothing. The science here prevails in the end. Good time to add…

[k breeze @i_am_tyred]

@golfaddict331 @semodough Great point

[Wall St Engine @wallstengine]

Goldman Sachs Initiates Coverage on $CRVS with Buy Rating, PT at $40

Analyst comments: "Stock at an attractive entry point for the leading emerging oral option in the large post-Dupixent atopic dermatitis market; PTCL opportunity is undervalued with significant pipeline-in-a-product potential. We think CRVS shares are attractively positioned as the current valuation does not capture the potential of what we view as a differentiated, emerging oral option for atopic dermatitis; a late-stage, high-probability program in PTCL (peripheral T-cell lymphoma); and a reasonable mechanistic rationale, ITK (interleukin-2 inducible T-cell kinase), supporting pipeline potential in multiple adjacent autoimmune conditions, including hidradenitis suppurativa and asthma, all of which will have catalysts in the next 12 to 18 months.

The global market for treatments for moderate-to-severe atopic dermatitis is growing rapidly and is projected to be more than $24 billion in 2035 per Goldman Sachs estimates, driven largely by the success of Dupixent, which Goldman Sachs estimates will generate approximately $13 billion in 2026 in atopic dermatitis alone. However, despite the step-up in effectiveness resulting from the introduction of biologics to the atopic dermatitis treatment arsenal, we note that approximately 20% of patients are refractory or not optimally controlled, and key opinion leaders note there remains a large unmet need for next-generation treatment to provide a dosing advantage either through longer injection intervals or oral administration.

We are cognizant of the competitive intensity in atopic dermatitis; however, we view soquelitinib as one of the most promising candidates in development for treatment-refractory atopic dermatitis, supported by: 1) its robust Phase 1 efficacy in patients who have stepped through various later-line therapies, 2) the convenience of an oral drug, and 3) a mechanistic approach outside of targeting the IL-13 axis. We see its broad-spectrum efficacy as mechanistically supported by the immunomodulation from ITK inhibition, which serves as a catch-all mechanism while maintaining a high margin of safety as the Th1 immune pathway is spared, although we caveat that data are early with limited patient numbers to power for safety.

Separately, while PTCL is a rare cancer and not necessarily the biggest opportunity, we nevertheless think the value of the program has been overlooked by the market as the clinical hurdle is relatively low and soquelitinib is relatively de-risked and could potentially enter the market in 2029, which provides a base valuation for CRVS as the autoimmune indications advance in the clinic. With respect to its pipeline-in-a-product potential, we see a precedent in dupilumab's development path to achieve indication expansion across type 2 allergic diseases and beyond, with Phase 2 programs in hidradenitis suppurativa and asthma starting in late 2026. While it is still at an early developmental stage, we can envision CRVS leveraging soquelitinib, like Regeneron, argenx, and Insmed did with their respective assets, and gradually maturing into large-cap biotech over the long term."

Analyst: Paul Choi

[In Honour Of Thomas W Phelps @HOThomasWPhelps]

Final line of Goldman analyst report on $CRVS PT $40

"While it is still at an early developmental stage, we can envision CRVS leveraging soquelitinib, like Regeneron, argenx, and Insmed did with their respective assets, and gradually maturing into large-cap biotech over the long term."

Wow $REGN comparison

[k breeze @i_am_tyred]

@bgcss12 @jamierkennedy It’s the ball

[k breeze @i_am_tyred]

@HOThomasWPhelps @wellsoreo_uni Any word on ALPS data timeline ?

[k breeze @i_am_tyred]

@IngrahamAngle Caldwell 🐐 $SOC

[k breeze @i_am_tyred]

@elrudyfig @Heady_Creek It’s flowing 🐓

[k breeze @i_am_tyred]

@SLORocker Lol

[k breeze @i_am_tyred]

@Investorclimber @Quakerbrothers @Maximus_Holla These levels are a gift

[k breeze @i_am_tyred]

@mnorm0033 @MarkWantsCA_Red @HOThomasWPhelps No