Capricor Therapeutics Updates Deramiocel Application Progress
Capricor Therapeutics provided a regulatory update regarding its Biologics License Application, BLA, for Deramiocel, the Company's investigational first-in-class cell therapy for the treatment of Duchenne muscular dystrophy, DMD. As previously disclosed, the Company provided topline results from its Phase 3 HOPE-3 clinical study to the U.S. Food and Drug Administration, FDA, in late 2025. Following its review of these data, the FDA has formally requested the full HOPE-3 clinical study report, CSR, and supporting data to address the Complete Response Letter, CRL. The FDA did not request any additional clinical studies or new patient data as part of this request. Preparation of the HOPE-3 CSR is well underway, and the Company plans to submit the requested materials to the FDA in February 2026. The Company expects that this submission will address the items outlined in the CRL and support continued review of the BLA, including the assignment of a new Prescription Drug User Fee Act target action date.
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- FDA Submission Preparation: Capricor is preparing to submit its DMD cell therapy Deramiocel to the FDA in February, addressing issues raised in a Complete Response Letter from July 2025, indicating that the company is making significant progress in preparing the clinical study report without the need for new trials, which could expedite market entry.
- Financial Expectations: According to Koyfin estimates, Capricor is expected to report no revenue for the quarter with an EBITDA loss of $24.60 million, slightly better than the previous quarter's loss of $25.79 million, suggesting a minor improvement in financial performance that may bolster investor confidence.
- Market Sentiment: On Stocktwits, retail sentiment towards Capricor is deemed 'extremely bullish', while Sarepta faces a 'bearish' sentiment due to legal and safety concerns, reflecting divergent investor outlooks on the future prospects of the two companies, which could influence stock price volatility.
- Earnings Pressure on Sarepta: Sarepta is expected to report quarterly revenue of $390.95 million with an EBITDA loss widening to $144.34 million, facing pressures from legal lawsuits and safety issues, which may negatively impact its stock price, with analysts showing mixed sentiments regarding its outlook.
- Tariff Increase Impact: President Trump announced a rise in global tariffs from 10% to 15%, following a Supreme Court ruling deeming the previous rate ‘anti-American’, which may exacerbate market uncertainty and affect investor confidence.
- Market Reaction: U.S. stock futures sharply declined on Monday morning, with Nasdaq futures down 0.6%, S&P 500 and Dow futures each falling 0.5%, and Russell 2000 futures nearly down 1%, indicating investor concerns over tariff hikes and geopolitical tensions.
- Retail Sentiment Shift: Retail sentiment towards the SPDR S&P 500 ETF (SPY) shifted from ‘neutral’ to ‘bearish’, while the Invesco QQQ Trust (QQQ) ETF remained ‘bearish’ amid high trading volumes, reflecting a pessimistic outlook on future market performance.
- Economic Data Watch: Investors will monitor factory orders data set to be released at 10:00 AM ET today, along with commentary from Fed Governor Christopher Wallace, as these insights could further influence market sentiment and investment strategies.
- Clinical Trial Progress: Capricor's Deramiocel demonstrated significant skeletal muscle and cardiac function improvements in the Phase 3 Hope-3 trial, with results from 106 participants indicating a statistically significant slowing of upper limb function decline, which is expected to advance the FDA approval process.
- FDA Review Request: The FDA requested Capricor to submit the full clinical study report from the Hope-3 trial without requiring new clinical trials, providing Capricor with an opportunity to continue the review and potentially set a new decision date.
- Stock Price Surge: Capricor's shares surged nearly 30% this week, with a single-day increase of over 14% on Thursday, reaching the highest level since December, reflecting investor optimism ahead of the upcoming FDA filing.
- Analyst Optimism: Following the release of the Hope-3 data, several Wall Street firms raised their price targets for Capricor, with B. Riley increasing its target from $21 to $50, projecting sales exceeding $1 billion by 2030, indicating a high probability of success for the drug.
- FDA Data Request: Capricor Therapeutics announced that the FDA has requested the full HOPE-3 clinical study report without asking for additional clinical studies or new patient data, providing the company an opportunity to advance its application.
- Clinical Trial Progress: Although the FDA rejected the Deramiocel application in July due to insufficient evidence of effectiveness, the results from the December HOPE-3 study indicated significant improvements in muscle and heart function, which may help meet the FDA's requirements.
- Future Plans: Capricor plans to submit the requested data to the FDA in February, expecting that this will support the continued review of its application and address the concerns raised by the FDA in July, aiming to provide faster treatment options for late-stage DMD patients.
- Market Reaction: Despite a 2% drop in Capricor's stock on Tuesday morning, the stock has gained 69% over the past 12 months, reflecting some market optimism regarding the approval of Deramiocel, although overall retail sentiment remains bearish.

- Phase 3 Trial Success: Capricor Therapeutics' Deramiocel met its primary and secondary endpoints in the Phase 3 HOPE-3 trial, significantly slowing upper limb functional decline by 54% and left ventricular ejection fraction decline by 91%, offering hope for DMD patients.
- Future Outlook: With FDA approval anticipated in 2026, Deramiocel could generate up to $1.5 billion in milestone payments, indicating the substantial market value of this therapy.
- Successful Financing: Following the announcement, the company raised $150 million in a public offering, providing crucial funding for further research and market launch, thereby boosting investor confidence.
- Market Potential: With approximately 200,000 global DMD patients, Capricor's commercialization agreement with Nippon Shinyaku highlights its strategic positioning in the U.S., Japan, and European markets.

- Stock Surge: Capricor Therapeutics experienced a remarkable 439.4% stock increase in December, reflecting strong market confidence in its DMD treatment, Deramiocel, and highlighting investor enthusiasm for biotech advancements.
- Clinical Trial Success: The Phase 3 HOPE-3 trial met both primary and secondary endpoints, demonstrating a 54% reduction in upper limb functional decline and a 91% decrease in left ventricular ejection fraction decline, establishing a solid foundation for the drug's market potential.
- Funding and Partnerships: Following the announcement, the company raised $150 million and signed a commercialization agreement with Japanese pharmaceutical firm Nippon Shinyaku, with potential milestones totaling $1.5 billion, indicating high market recognition for the therapy.
- FDA Approval Outlook: Although the FDA did not approve its Biologics License Application in July, the company plans to submit a new application in 2026 incorporating HOPE-3 data, with management expressing confidence in securing approval, suggesting promising commercialization opportunities ahead.





