Spruce Biosciences Rallies on Oppenheimer Outperform Rating

Oppenheimer Holdings is an American multinational independent investment bank and financial services company offering investment banking, financial advisory services, capital markets services, asset management, wealth management, and related products and services worldwide. The company, which once occupied the One World Financial Center building in Manhattan, now bases its operations at 85 Broad Street in New York City. Spruce Biosciences Inc (NASDAQ:SPRB) shares rose 21% Friday after bullish commentary from Oppenheimer. as a rating given by some analysts that publicly research and recommend securities of it will produce higher returns, for the foreseeable future, than the major market indexes. The analyst Hartaj Singh initiated coverage of Spruce with an outperform rating and $15 price target, saying the company is a quality biotech name.

Spruce is committed to transforming the lives of patients living with rare endocrine disorders. Spruces wholly-owned product candidate, tildacerfont, is a CRF1 receptor antagonist currently in late-stage clinical trials in adult patients with classic congenital adrenal hyperplasia (CAH). Spruce Biosciences is a U.S.-based late-stage biopharmaceutical company focused on developing and commercializing therapies for rare endocrine disorders. The company's lead product candidate, Tildacerfont, is a potential treatment for congenital adrenal hyperplasia, a rare endocrine disease.

The analyst of Oppenheimer Singh told investors in a research note that the recent clinical slowdown “is not reflective of the quality of this biotech name.”

“Tildacerfont is in late-stage development for congenital adrenal hyperplasia and a Phase 2 proof of concept trial in a sub-population of Polycystic Ovary Syndrome should be started in the next few months,” the analyst said.

Spruce shares have been on a constant decline for most of the year, down 88% in 2021. A week ago, Benchmark initiated the stock with a speculative buy rating and $7 price target and also as a clinical stage biopharmaceutical company focused on developing novel therapies for rare diseases affecting the endocrine system.