On Wednesday, Oppenheimer adjusted its price target for Cellectis (NASDAQ:CLLS) shares, a biopharmaceutical company, to $10.00 from the previous $11.00, while maintaining an Outperform rating on the stock.
The revision follows a recent discussion with the company's management, including the CEO and interim CFO, and a review of the financial results for the first quarter of 2024, which were announced on May 28, 2024.
The company's confidence in its UCART22 Phase 2 development was underscored during the conversation with management, particularly if an accelerated approval pathway becomes available.
Oppenheimer anticipates the completion of the escalation phase for both UCART22 and UCART20x22 programs by the end of 2024. The firm suggests that subsequent expansion studies could potentially serve as pivotal trials at the dose expansion stage, assuming the clinical data supports such a move.
Cellectis has recently benefited from a partnership and financial boost provided by AstraZeneca (NASDAQ:AZN), which has led to increased spending on clinical programs. As a result, Oppenheimer has adjusted its expectations for the company's product launches to 2027 and beyond. Additionally, the firm has updated its operating expense forecast, extending the company's cash runway into 2026.
The analyst from Oppenheimer expressed a continued bullish stance on Cellectis, despite the lowered price target, based on the company's clinical progress and strategic financial planning.
The firm's revised price target reflects a comprehensive update to its financial model, taking into account the latest quarterly report and insights from the company's leadership.
In other recent news, biopharmaceutical company Cellectis reported significant developments in its first quarter 2024 earnings call. The company announced a considerable equity investment of $140 million from AstraZeneca, raising their total investment to $245 million and ownership to around 44% of Cellectis' share capital.
This additional funding is expected to support Cellectis' operations until 2026, allowing the company to advance core clinical trials and develop new genomic medicines.
Cellectis has also reported promising preliminary results from their UCART22-P2 and UCART20x22 trials, with a complete response in the NatHaLi-01 trial. These developments highlight the progress of ongoing clinical trials targeting hematological malignancies, a key focus of the company's strategic collaboration with AstraZeneca.
Financially, Cellectis has seen a significant improvement, reporting a consolidated adjusted net income of $6.5 million, a stark contrast to the previous year's net loss of $28.1 million.
The company has also appointed Arthur Stril as interim CFO. These recent developments underline the company's ongoing growth and commitment to advancing medical research.
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