Cynata Therapeutics (ASX:CYP) continued to progress its clinical pipeline during the March quarter, and topline trial readouts due in the coming weeks represent "the most significant catalysts" for the company in several years, Euroz Hartleys said in a May 8 note.

The company's lead phase two trial of CYP-001 in acute graft-versus-host disease is due for results in June. The therapy candidate "could attract significant commercial interest" if it replicates phase one results, which showed a roughly 86% overall response rate at day 28 compared with around 62% for standard of care, the equity research firm said.

Meanwhile, topline results from a phase three trial of CYP-004 in osteoarthritis are expected in May, where a positive outcome would likely drive global partnering interest given the size of the osteoarthritis market and the potential for the drug candidate to become the first disease-modifying therapy for the indication, Euroz Hartleys said.

Cynata Therapeutics' operating cash outflows are expected to decline as the phase two trial of CYP-001 is almost complete, the firm added.

Euroz Hartleys maintained its speculative buy rating on the company while reducing its price target to AU$0.87 per share from AU$0.90.

Cynata Therapeutics shares gained 3% in recent Monday trade.