Stifel doubts FDA investigation is end for CAR T in autoimmune

Stifel analyst Benjamin Burnett says Cabaletta Bio (CABA) and Gracell (GRCL) are down sharply after the FDA said it is investigating CAR T toxicity. The lack of details has created uncertainty, particularly for autoimmune CAR T stocks where the safety bar is generally perceived as high, the analyst tells investors in a research note. The FDA acknowledged it has received reports of secondary malignancy after CAR T treatment in the setting of oncology and that this includes CAR+ lymphoma, Stifel points out. The firm doubts this the end for CAR T in autoimmune. This may increase the chance that CAR T will be reserved for severe patients, according to the firm. However, Stifel thinks this is a substantial market opportunity if that happens, which implies upside to both Cabaletta and Gracell shares.