PRESS RELEASE
CARDIOL THERAPEUTICS INC. (NASDAQ: CRDL)
Investment research report – “Addressing unmet heart health needs” – released today
2nd June 2022
TAG Investment Bankers is pleased to announce today the publication of a research report which covers Cardiol Therapeutics Inc. (NASDAQ: CRDL). Cardiol Therapeutics is a clinical-stage life sciences company focused on the research and clinical development of anti-inflammatory and anti-fibrotic therapy for the treatment of cardiovascular disease (“CVD”). The company’s lead product, CardiolRx™, is a pharmaceutically produced oral cannabidiol formulation that is being clinically developed for use in cardiovascular medicine. CardiolRx is currently being evaluated in a Phase II/III multi-national, randomized, double-blind, placebo-controlled study (the “LANCER” trial).
AG Investment Bankers argues that Cardiol Therapeutics appears well placed to address important unmet medical needs across multiple cardiovascular areas, including acute myocarditis, recurrent pericarditis, and chronic heart failure. The company’s focus on cannabidiol as an anti-inflammatory and anti-fibrotic therapy in our view implies significant revenue generation potential. CardiolRx’s™ opportunity to be a “game changer” in heart health appears not to be reflected in its current stock market valuation. Today’s report argues for an US$8.00 fair value per share for the company’s NASDAQ listing, based on arguably conservative assumptions.
- Cardiol’s primary research and clinical development activities address cardiovascular conditions related to inflammation and fibrosis associated with COVID-19 and acute myocarditis. The company is also active in the development of a subcutaneous cannabidiol injection treatment for broader application in heart disease patients and recently announced scope to address recurrent pericarditis. Net cash at end-Q1 2022 was C$75m.
- Heart health represents a sizable addressable market for CardiolRx and its priority indications. COVID-19 patient numbers appear likely to remain prevalent for some time while rare disease acute myocarditis treatments should benefit from favourable pricing. Cardiol’s subcutaneous cannabidiol injection development arguably addresses a market size on a par with overall heart health.
- CardiolRx’s stages of clinical development put the company in a position to start generating sales revenue from its key indications in the middle of the current decade. CardiolRx for the COVID-19 LANCER trial is in Phase II/III development with an established CRO and we assume will be commercially available in 2024. CardiolRx for acute myocarditis has also completed Phase I.
- Cardiol Therapeutics’ investment case is supported by a strong leadership team and focused strategy. The senior management team boasts around 150 years of combined tenure in relevant roles and represents a balance of healthcare, operational, and financial experience.
- Today’s report argues that Cardiol’s current share price valuation offers investors substantial upside potential on the basis of a hard valuation measure derived from a healthcare peer group. Indeed, the report argues that at present, there appears to be little stock market recognition of the prospect of the company’s drugs, the markets which they address, their progress through the approval stage, and the quality of the leadership team.
Contact
Chris Wickham
Chief Marketing Officer
TAG Investment Bankers Ltd
Email: Chris.wickham@tagbankers.com
Tel: +4477 6465 5390
Please refer to the research report’s disclaimer which is copied in full on page 2 of this Press Release.
Disclaimer
Cardiol Therapeutics paid TAG Investment Bankers analyst Chris Wickham to produce this report. This report has been published by TAG Investment Bankers Ltd. TAG Investment Bankers Ltd do not offer personal advice, and the information referred to on our sites is not suitable for all investors. You confirm that you are a person falling within the following categories of an appropriately qualified investor and are therefore exempt from the general restriction on thecommunication of invitations or inducements to engage in investment activity on the grounds that you are, either; a high net worth individual, a sophisticated investor, an Investment Professional or a representative of a high net worth company, trust, partner- ship or association. If you are unsure whether an investment is suitable for your circumstances, we strongly encourage you to consult an FCA/SEC or other Financial Regulator in your country of residence – authorized Independent Financial Adviser before committing to any form of investment. All information and numbers are subject to change without notice. Any return on investment stated is for discussion purposes only and is based on a best-efforts basis. Under no circumstances whatsoever does it represent a fair and accurate view of actual results. Please be advised that it will change or might change in the future and that under no circumstances whatsoever can we or any of our associates, employees or partners be held responsible if the forecasted results are not met. Neither Chris Wickham nor TAG Investment Bankers is currently a registered holder of Cardiol Therapeutics shares.