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Carisma Therapeutics shares maintain Buy rating

EditorAhmed Abdulazez Abdulkadir
Published 06/27/2024, 08:11 AM
CARM
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On Thursday, H.C. Wainwright sustained a positive stance on Carisma Therapeutics Inc (NASDAQ: CARM) by reiterating a Buy rating and an $8.00 price target. This endorsement follows the recent Fast Track designation awarded by the Food and Drug Administration (FDA) for CT-0525, Carisma's innovative therapy for advanced or metastatic solid tumors.

CT-0525, described as an ex vivo gene-modified HER2-targeted CAR-Monocyte, is designed for patients whose tumors overexpress HER2 and who have not responded to existing treatments. The Fast Track status, announced by Carisma on June 25, is expected to facilitate a more efficient development and review process for the treatment.

The Fast Track program provides several advantages, including increased frequency of meetings and written communications with the FDA, guidance on trial design, and the potential for Accelerated Approval and Priority Review if certain criteria are met. Additionally, it allows for a rolling review of the Biologics License Application, which means that the FDA will review sections of the application as they are completed rather than waiting for the entire document.

H.C. Wainwright's continued support for Carisma Therapeutics is underpinned by the potential regulatory benefits that the Fast Track designation could bring to CT-0525's development timeline. The firm's maintained price target reflects confidence in the therapy's prospects and Carisma's overall strategy.

In other recent news, Carisma Therapeutics has received Fast Track designation from the U.S. Food and Drug Administration for its novel cellular therapy, CT-0525, designed to treat solid tumors expressing high levels of the human epidermal growth factor receptor 2. The company has initiated a Phase 1 clinical trial for this therapy, with initial data expected by the end of 2024.

Analyst firm Evercore ISI has adjusted its price target for Carisma Therapeutics to $4.00, maintaining an Outperform rating. Meanwhile, BTIG has initiated coverage on Carisma Therapeutics with a Buy rating and a price target of $6.00. On the personnel front, Carisma Therapeutics has recently appointed Dr.

InvestingPro Insights

As Carisma Therapeutics Inc (NASDAQ: CARM) garners attention with its Fast Track designation for CT-0525, a closer look at the company's financial health and market performance offers additional insights. With a market capitalization of $50.68 million and a notable revenue growth of 22.99% in the last twelve months as of Q1 2024, Carisma shows signs of expanding its financial base. However, it's important to note that the company is not currently profitable, with a negative operating income margin of -565.71% in the same period.

Investors should consider that Carisma holds more cash than debt on its balance sheet, which could provide some financial flexibility in its operations. Additionally, despite recent volatility, the company has seen a significant return over the last week, with a 20.79% price total return. This suggests that investor sentiment may be shifting, potentially in response to recent developments such as the FDA's Fast Track designation for its leading therapy.

For those seeking comprehensive analysis and further insights, InvestingPro offers additional tips on Carisma Therapeutics. Subscribers can access these tips to gain a deeper understanding of the company's financial nuances and market potential. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover the 12 additional InvestingPro Tips available for Carisma Therapeutics at https://www.investing.com/pro/CARM.

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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