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Adicet Bio stock maintains neutral rating amid lupus nephritis trial

EditorAhmed Abdulazez Abdulkadir
Published 10/01/2024, 07:27 AM
ACET
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On Tuesday, H.C. Wainwright maintained its Neutral rating on Adicet Bio Inc. (NASDAQ:ACET), following the company's announcement regarding its ongoing clinical trials. Adicet Bio has recently opened enrollment for a Phase 1 trial of ADI-001, which targets autoimmune diseases such as lupus nephritis (LN), systemic lupus erythematosus (SLE), systemic sclerosis (SSc), and anti-neutrophil cytoplasmic autoantibody associated vasculitis (AAV).

The trial is studying Adicet's off-the-shelf gamma delta T cell product candidate, ADI-001, which contains an anti-CD20 CAR.

The primary endpoints of the study are to assess the incidence of treatment-emergent adverse events, including their severity and relatedness, as well as the incidence of dose-limiting toxicities in the initial part of the trial. Secondary and exploratory endpoints will measure cellular kinetics, pharmacodynamics, autoantibody titers, and disease activity scores for each condition.

The Fast Track Designation for ADI-001 was granted by the FDA on June 5, 2024, for the potential treatment of class III or IV LN. The current Phase 1 study has separate arms for LN/SLE, SSc, and AAV. Participants in the trial will receive a single dose of ADI-001.

Adicet Bio plans to open enrollment for SLE, SSc, and AAV patients in the fourth quarter of 2024 and aims to report preliminary clinical data for all autoimmune indications in the first half of 2025.

The company's previous Phase 1 GLEAN study in relapsed or refractory non-Hodgkin's lymphoma (NHL) patients demonstrated B-cell depletion with ADI-001, which is seen as a positive sign for its development in autoimmune diseases. H.C. Wainwright has indicated that it will reevaluate its rating and price target for Adicet Bio upon the release of clinical data in autoimmune indications and once a more defined development timeline for ADI-001 in these diseases is established.

In other recent news, Adicet Bio, a biotechnology company, has reported positive data from its Phase 1 GLEAN study on ADI-001, a gamma delta T cell product candidate. The study showed significant B cell depletion in patients with non-Hodgkin's lymphoma, indicating potential as an off-the-shelf therapy for autoimmune diseases. Despite these promising results, H.C. Wainwright maintained a Neutral rating on the company's shares.

Adicet Bio has also made strategic decisions to focus on autoimmune diseases, ceasing the Mantle Cell Lymphoma study and advancing the clinical development of ADI-001 for conditions such as lupus nephritis, systemic lupus erythematosus, systemic sclerosis, and anti-neutrophil cytoplasmic autoantibody associated vasculitis. Analysts from Canaccord Genuity and Jones Trading have adjusted their price targets for the company, reflecting these changes in the product pipeline.

The U.S. Food and Drug Administration has granted Fast Track Designation to ADI-001 and clearance for a Phase 1 clinical trial of ADI-270, another potential therapy candidate. Lastly, the company has expanded its board with the appointment of Dr. Lloyd Klickstein, an expert in rheumatology, immunology, and drug development, expected to advance its autoimmune programs.

InvestingPro Insights

Recent InvestingPro data provides additional context to Adicet Bio's (NASDAQ:ACET) clinical developments. The company's market capitalization stands at $118.66 million, reflecting its current valuation in the biotech sector. Notably, Adicet Bio's stock has shown a strong return of 25.22% over the last three months, potentially indicating positive investor sentiment surrounding its clinical progress.

InvestingPro Tips highlight that Adicet Bio holds more cash than debt on its balance sheet, which could be crucial for funding its ongoing clinical trials, including the newly opened Phase 1 trial for ADI-001. However, the company is quickly burning through cash, a common characteristic of biotech firms in the development stage. This cash burn rate underscores the importance of the company's clinical milestones, as positive results could potentially lead to partnerships or additional funding opportunities.

It's worth noting that analysts do not anticipate the company to be profitable this year, which aligns with Adicet Bio's focus on clinical development rather than immediate commercialization. For investors seeking more comprehensive analysis, InvestingPro offers 8 additional tips that could provide deeper insights into Adicet Bio's financial health and market position.

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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