B.Riley Securities initiated coverage of Cardiol Therapeutics Inc. (NASDAQ: CRDL) with a Buy recommendation, assigning a price target of $11.00 per share. The stock, which closed at $2.00 on Tuesday, has gained 110% year-to-date and remains near its 52-week high of $2.02.
The analyst cited reduced risk for Cardiol Therapeutics’ lead candidate, CardiolRx, in the ongoing pivotal Phase 3 MAVERIC study targeting recurrent pericarditis. CardiolRx is being developed as the first oral maintenance therapy for the condition, which involves recurring inflammation of the sac surrounding the heart. The company holds orphan drug designation for the program.
CardiolRx targets the interleukin-1 pathway at the transcriptional level, controlling IL-1 release. The therapy is positioned for a patient population of roughly 14,000 individuals with two or more recurrences in the U.S., within a broader addressable market of about 37,000 patients. The therapeutic class gained validation with the FDA’s March 2021 approval of rilonacept (marketed as ARCALYST), licensed by Kiniksa from Regeneron under a 2017 agreement.
ARCALYST, administered as a weekly subcutaneous injection, has already surpassed 4,550 prescribers. Projected revenue for ARCALYST in fiscal 2026 is estimated between $980 million and $995 million, with an annual cost per patient approaching $302,000. Eli Lilly’s January 2026 acquisition of Ventyx for approximately $1.2 billion further underscored investor interest in oral inflammasome inhibitors.
Cardiol Therapeutics maintains a strong balance sheet, with cash exceeding debt and a current ratio of 5.55, providing financial flexibility for its clinical programs. Preliminary data from the MAVERIC study is expected in the first quarter of 2027.
