C4 Therapeutics: Initiating at Overweight on Cemsidomide's Potential in Multiple Myeloma

We are initiating coverage of C4 Therapeutics (CCCC) with an Overweight rating and a December 2027 price target of $10, driven by the potential of lead asset cemsidomide (cereblon-based IKZF1/IKZF3 degrader) in multiple myeloma (MM). Indeed, despite a rapidly evolving treatment and development landscape, our key opinion leader (KOL) feedback suggests an emerging/additive clinical profile for cemsidomide in MM, supported by early phase 1 data in a highly refractory population. Of note, we see CCCC shares as undervalued based on cemsidomide's 4L+ opportunity alone, which supports a valuation toward the higher end of the mid-single-digit/share range (JPMe $500-600M US peak sales by 2035/POS 60%). Longer term, combinations upstream will be key to unlocking the value of cemsidomide, such as the ongoing phase 1b elranatamab (BCMA-directed CD3 T-cell engager bispecific antibody) combo study in the 2L+ setting (JPMe ~$3-4B US peak sales by 2041/POS 25%). We see the probability of success, peak