On Wednesday, Carisma Therapeutics Inc (NASDAQ: CARM) received a Buy rating from EF Hutton, accompanied by a $24.00 price target. The biotechnology firm, known for its pioneering work on chimeric antigen receptor therapies (CAR therapies), has been recognized for its potential to create the first solid tumor CAR therapy using Macrophages (CAR-M).
The company's lead candidate, CT-0525, is a second-generation CAR-M therapy targeting HER2-overexpressing cancers. With initial data from the Phase 1 study anticipated by the end of the year, the analyst noted the impressive results from the precursor study, CT-0508. This positive outlook is bolstered by Carisma's collaboration with Moderna (NASDAQ:MRNA) to develop an in-vivo CAR-M therapeutic, which could significantly alter the current CAR therapy landscape.
EF Hutton's endorsement reflects confidence in Carisma's technology platform, attributing half of the price target's value to this aspect of the company. The firm's innovative approach to cancer treatment has positioned it as a notable player in the biotech industry, with the potential to impact the treatment of solid tumors through its CAR-M therapies.
Investors have responded favorably to the analyst's coverage initiation, as reflected in the positive movement of Carisma's stock. The company's progress in developing novel cancer therapies continues to draw attention from the biotech community and investors alike, with many keeping a close watch on the upcoming clinical data release.
In other recent news, Carisma Therapeutics has been notified by the Nasdaq Stock Market of a potential delisting due to its market value falling below the required threshold. The company now has a 180-day period to regain compliance. In parallel, Carisma Therapeutics and Moderna, Inc. are expanding their collaboration to develop new treatments for autoimmune diseases, focusing on two specific targets. The partnership will leverage Carisma's proprietary CAR-M technology and Moderna's mRNA/LNP platform.
The FDA has granted Fast Track designation to Carisma's novel cellular therapy, CT-0525, potentially speeding up its development and review process. In addition, Carisma has seen changes in its board and advisory team, with the appointment of liver fibrosis experts, Dr. Scott Friedman and Dr. Ira Tabas, to its Scientific Advisory Board, and the election of Marella Thorell and David Scadden, M.D., as directors.
Analyst firms have shown confidence in the company's direction. H.C. Wainwright has maintained a Buy rating for Carisma, while Evercore ISI has maintained an Outperform rating, and BTIG has initiated coverage with a Buy rating.
InvestingPro Insights
While Carisma Therapeutics Inc (NASDAQ: CARM) has received a positive analyst rating, it's crucial to consider the company's financial health and market performance. According to InvestingPro data, Carisma's market capitalization stands at $41.96 million, with a revenue of $20.71 million over the last twelve months as of Q2 2023. The company has shown impressive revenue growth, with a 158.34% increase in the most recent quarter.
However, InvestingPro Tips highlight some challenges. Carisma is quickly burning through cash and suffers from weak gross profit margins. The company's gross profit margin for the last twelve months stands at -246.38%, indicating significant costs relative to revenue. This aligns with the early-stage nature of biotech companies investing heavily in research and development.
On a positive note, Carisma holds more cash than debt on its balance sheet, which could provide some financial flexibility as it advances its CAR-M therapies. The company is trading at a low revenue valuation multiple, potentially offering an opportunity for investors who believe in its long-term prospects.
For those interested in a deeper analysis, InvestingPro offers 10 additional tips for Carisma Therapeutics, providing a more comprehensive view of the company's financial situation and market position.
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