On Monday, Chardan Capital Markets initiated coverage on Cargo Therapeutics (NASDAQ:CRGX) stock with a Buy rating and a price target of $28.00. The firm highlighted the company's promising CAR-T product candidates and the experienced management team as key drivers for the positive outlook.
Cargo Therapeutics' lead asset, firi-cel, is an autologous CD22 CAR-T therapy that has shown encouraging results in phase I trials for large B cell lymphoma (LBCL) and B cell acute lymphocytic leukemia (B-ALL).
The company is currently conducting a phase II LBCL study of firi-cel, which is considered potentially pivotal, with an expected topline readout in the first half of 2025.
This study focuses on patients who have already undergone CD19 CAR-T treatments, a group that is anticipated to expand as CAR-T therapies are used more frequently in earlier treatment lines. Additionally, plans are underway to evaluate firi-cel in patients who have not previously received CAR-T therapies.
Cargo Therapeutics is also developing technologies to overcome current limitations in CAR-T efficacy. One such technology includes a CD2 costimulatory domain intended to bypass resistance caused by the loss of CD58 on tumor cells.
Another is the STASH platform, which is designed to facilitate the engineering of multi-component CAR-Ts that can carry additional transgenes to enhance their persistence or localization within the body.
Moreover, the company's second CAR-T candidate, CRG-023, leverages the CD2 technology and is a tri-cistronic therapy targeting CD19, CD20, and CD22, aimed at addressing resistance due to target loss.
CRG-023 is in the IND-enabling study phase, and Chardan Capital Markets anticipates potential for share price appreciation as the development strategy becomes clearer.
In other recent news, Cargo Therapeutics has been making significant strides in its operations. The company has secured approximately $110 million in gross proceeds from a successful private investment in public equity (PIPE) financing. This funding is earmarked for the preparation of a Biologics License Application (BLA) for its Phase 2 study, FIRCE-1, and further development of its CRG-023 program.
Piper Sandler has initiated coverage on shares of Cargo Therapeutics, assigning an Overweight rating with a price target of $37. This optimistic outlook is based on promising data from an early-stage clinical trial for CRG-022, Cargo's investigational therapy for certain types of lymphoma. Meanwhile, Truist Securities has adjusted its price target for Cargo Therapeutics to $32 from $34, maintaining a Buy rating on the company's stock.
In terms of personnel, Cargo Therapeutics recently announced the appointment of Dr. Kapil Dhingra, a medical oncologist with over 25 years of experience, to its Board of Directors.
This appointment comes as the company advances its lead CAR T-cell therapy candidate, firi-cel (CRG-022). These are the latest developments for Cargo Therapeutics as it continues to focus on the development of next-generation cell therapies for cancer treatment.
InvestingPro Insights
As Cargo Therapeutics (NASDAQ:CRGX) advances its CAR-T product candidates, investors may find the financial health and market performance of the company to be crucial considerations. According to real-time data from InvestingPro, CRGX holds a market capitalization of $704.9 million, with a Price to Book ratio for the last twelve months as of Q1 2024 standing at 1.89. This suggests that the company's stock is trading close to its book value, which may be a point of interest for value investors. However, the company's P/E Ratio (Adjusted) for the same period is -5.82, reflecting the market's anticipation of future earnings challenges.
InvestingPro Tips reveal a mixed financial picture for CRGX. On the one hand, the company holds more cash than debt, providing some financial stability, and its liquid assets exceed short-term obligations, which is reassuring for near-term financial health. On the other hand, the company is quickly burning through cash and suffers from weak gross profit margins. Analysts do not expect CRGX to be profitable this year, and net income is anticipated to drop. Additionally, the company has not been profitable over the last twelve months and does not pay a dividend to shareholders, which may deter income-focused investors.
For those seeking to delve deeper into the financial and strategic positioning of Cargo Therapeutics, there are more InvestingPro Tips available that could provide further insights into the company's outlook and performance. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, gaining access to a comprehensive array of analytics tools and data points that can inform investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.