New York, Jan 20, 2026, 19:13 ET — After-hours
- Shares of Corvus surged more than threefold Tuesday following new placebo-controlled eczema trial results
- After the close, the company kicked off a $150 million offering, combining stock sales with pre-funded warrants.
- Analysts raised price targets, while investors focus on the deal terms and the kickoff of Phase 2
Corvus Pharmaceuticals shares surged over threefold on Tuesday following fresh data release on its experimental eczema pill. The biotech also announced plans to raise $150 million through an underwritten stock offering.
After-hours trading saw the stock surge roughly 167% to $21.41, with about 84 million shares changing hands.
This move matters since Corvus is still in the clinical phase with no approved treatments. A clear placebo-controlled result can quickly shift biotech expectations—especially in atopic dermatitis, a crowded field where payers and doctors have alternatives.
Corvus jumped on the rally with a financing round right after. For small biotechs, new cash can accelerate trials — but if it comes at a discount, shareholders face dilution.
Corvus announced that cohort 4 of its Phase 1 trial for soquelitinib in moderate-to-severe atopic dermatitis hit key benchmarks compared to placebo after eight weeks. The company reported a 72% average drop in EASI (Eczema Area and Severity Index) by day 56, versus 40% for placebo, with the gap reaching statistical significance (p=0.035). 1
Corvus reported that 75% of patients treated achieved EASI 75, indicating at least a 75% improvement, compared to just 20% on placebo. Additionally, 33% reached an IGA 0/1 score—meaning clear or almost clear skin—while no one on placebo did. Richard A. Miller, Corvus’ CEO, commented, “Bottom line, we believe this is a successful Phase 1 program … without compromising safety.” 1
After the market closed, Corvus announced it had launched an underwritten public offering worth $150 million in common stock and pre-funded warrants for select investors. This setup allows buyers to pay most of the price upfront while delaying full share ownership. The company also said underwriters have a 30-day option to purchase an additional $22.5 million in stock. 2
Corvus plans to use the funds for working capital and general corporate needs, including R&D on its Phase 3 T cell lymphoma program and Phase 2 trials for atopic dermatitis, hidradenitis suppurativa, and asthma. Jefferies and Goldman Sachs are heading the deal, the company said. 2
Analysts wasted no time. Mizuho bumped its price target to $20 from $13, maintaining an Outperform rating. They described the latest atopic dermatitis data as “outstanding,” according to a note reported by TheFly. 3
H.C. Wainwright’s Sean Lee raised his price target sharply to $27 from $11, sticking with a Buy rating. He called the cohort 4 results “game-changing,” according to the same report from TheFly. 4
Corvus reported the drug demonstrated activity in patients previously treated with systemic therapies, including those resistant to dupilumab and JAK inhibitors — two major segments of the current eczema market. The company aims to kick off a Phase 2 trial in Q1 2026, planning to enroll around 200 patients. 1
But the risks are well-known. This was a small, early-stage study, and placebo patients showed notable improvement as well — a setup that often appears less striking in bigger, longer trials. Safety data also usually becomes murkier as more patients are exposed over time.
Next, eyes turn to the pricing of the $150 million offering and the dilution it brings. Then, all will watch to see if Corvus stays on track to kick off Phase 2 in the first quarter.
