Celularity (CELU) is a clinical-stage biotech company at the frontier of some of the world’s most cutting-edge cancer research. The company’s innovative use of placental tissue as material for its NK-cell and T-cell therapies may prove more effective and cost-efficient than alternative allogeneic sources, which have traditionally been limited to iPSC, umbilical cord blood and healthy-donor peripheral blood.
Oppenheimer analyst Matthew Biegler is of the belief that allogeneic NK-cell and T-cell therapies are on their way to replacing autologous CAR-T, citing “improvements in scalability, accessibility, and performance.” He generally views acute myeloid leukemia (AML) as the next target for cancer cell therapy, and initial clinical data from CYNK-001, the company’s lead candidate, in AML, were successful enough to back up that theory.
As with most of the progress in the world of science and tech, this new source of cell therapy is likely to prove “more incremental than transformative” for the global fight against cancer. But Celularity’s pipeline offers encouragement, with Phase 1 trial readouts potentially ready for presentation in 2022.
Although competitors Fate Therapeutics and Nkarta are also due for their Phase 1 results for NK-cell therapies in AML, Biegler banks on CELU, due to their focus on the consolidation setting instead of just the relapsed/refractory settings as seen in the CYNK-001 Phase 1 clinical trial. The analyst sees the potential for this to “unlock a lucrative business opportunity.”
Celularity’s innovation in T-cell therapies in addition to NK-cell therapies certainly gives it an edge over other companies, according to Biegler. CELU is creating an original CD19 CAR-T dubbed CyCART-19, CD19-targeting CAR placental-derived T-cell therapy. Biegler notes that this experimentation could be “proving ground for placental-derived cell therapies by testing whether purported advantages in cell fitness and immune privilege translate to improvements in response rates and durability.”
So, what can investors glean from this? Biegler rates CELU shares an Outperform (i.e. Buy) and gives it a $9 price target, implying that shares will hike up 39% over the next 12 months. (To watch Biegler’s track record, click here)
Two other analysts join in Biegler’s bullish attitude, plus one labelling the stock a Hold, adding up to a Strong Buy Street rating. The average target is $11, suggesting returns of ~70% for the upcoming year. (See CELU stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
