Cereno Scientific - CMD highlights a ‘rare’ portfolio refocus - Edison

Cereno Scientific recently held a capital markets day (CMD), providing greater insight on its development pipeline and strategic objectives. The key takeaway was its decision to focus on the rare disease space across its three programmes, a move we believe was strategically driven to maximise potential clinical and commercial success, and to appeal to future partners. While lead asset CS1 is targeting pulmonary arterial hypertension (PAH), supported by Fluidda and CardioMEMS (pivotal studies expected in 2026), CS014, the second HDAC inhibitor in Cereno’s portfolio, will now be evaluated in idiopathic pulmonary fibrosis (IPF), another rare indication with a three- to five-year average survival and no curative treatments. Management also highlighted the potential for CS585, its preclinical-stage asset in rare indications such as antiphospholipid syndrome (APS), an autoimmune disorder. We update our estimates to reflect the new target indication for CS014 and increase our valuation to SEK14.3/share, from SEK13.9/share previously.