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Adicet Bio shares hold Buy rating, steady target amid clinical expansion

EditorNatashya Angelica
Published 08/14/2024, 06:39 AM
ACET
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On Wednesday, BTIG maintained a positive outlook on shares of Adicet Bio Inc. (NASDAQ:ACET), reiterating a Buy rating and a price target of $6.00. The firm highlighted the company's second-quarter earnings and its progress in expanding clinical development for its autoimmune treatment ADI-001.

Adicet Bio has broadened the scope of ADI-001's clinical development beyond lupus nephritis, now including systemic lupus erythematosus (SLE), systemic sclerosis (SSc), and anti-neutrophil cytoplasmic autoantibody (ANCA) associated vasculitis (AAV).

The company has kick-started activities at multiple clinical sites following Investigational New Drug (IND) clearances. It is anticipated that patient enrollment for the Phase I study in lupus nephritis will commence in the third quarter of 2024. Moreover, Adicet is preparing to initiate a clinical study for ADI-270 in renal cell carcinoma in the fourth quarter of 2024, following IND clearance and Fast Track Designation (FTD), with initial data expected in the first half of 2025.

Adicet Bio is also planning to provide a clinical update for ADI-001 in treating Mantle Cell Lymphoma in the fourth quarter of 2024. The update is eagerly awaited, particularly for the six-month complete response (CR) rate data. This sustained focus on advancing its clinical pipeline underscores the company's commitment to addressing a range of autoimmune diseases and cancers.

The firm's reiterated Buy rating and price target reflect confidence in Adicet Bio's strategic clinical advancements and its potential to achieve significant milestones in the near future. The company's efforts to expand its clinical trials and the anticipation of forthcoming data releases are key factors underpinning this positive assessment.

In other recent news, Adicet Bio, a biotechnology firm, has made significant strides in the medical field. The U.S. Food and Drug Administration (FDA) granted Fast Track Designation to the company's investigational therapy ADI-001, intended for treating relapsed or refractory lupus nephritis.

This designation accelerates the development and review of drugs for severe conditions and unmet medical needs. Adicet Bio plans to commence a Phase 1 clinical study of ADI-001, which has shown promise in depleting CD19+ B-cells in non-Hodgkin’s lymphoma.

Additionally, Adicet Bio has received clearance from the FDA to proceed with a Phase 1 clinical trial of ADI-270, a pioneering gamma delta CAR T cell therapy candidate, for the treatment of relapsed or refractory renal cell carcinoma (RCC).

The company aims to launch this trial in the second half of 2024. ADI-270 stands out as the first gamma delta 1 CAR T cell therapy candidate to be evaluated in clinical trials for solid tumors, specifically targeting CD70+ cancers.

These recent developments underscore Adicet Bio's commitment to advancing its research and development efforts in the field of cancer therapy and autoimmune diseases. The company's pipeline includes off-the-shelf gamma delta T cells engineered with chimeric antigen receptors (CARs) to potentially provide durable activity in patients.

InvestingPro Insights

As Adicet Bio Inc. (NASDAQ:ACET) garners attention with its strategic clinical advancements, a glance at the company's financial health and market performance through InvestingPro provides additional context. The company holds a market capitalization of $106.83 million, which, when paired with its progress in clinical trials, offers a glimpse into its potential growth trajectory.

Despite a challenging financial landscape marked by a negative P/E ratio of -0.58 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -0.87, Adicet Bio's strategic moves in the biotech industry could be a focal point for investors.

InvestingPro Tips suggest a cautious approach, noting that the company is quickly burning through cash and has not been profitable over the last twelve months, with an operating income of -$130.12 million. Additionally, the stock's price movements have been quite volatile, experiencing a significant 55.17% drop over the last six months. However, on the positive side, Adicet Bio holds more cash than debt on its balance sheet and has liquid assets that exceed short-term obligations, which may provide some financial flexibility in the near term.

Investors interested in Adicet Bio's financial details and stock performance can find a wealth of additional InvestingPro Tips, offering further insights into the company's valuation and market activity. For a deeper dive into Adicet Bio's financial health and future prospects, visit https://www.investing.com/pro/ACET.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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