On Thursday, H.C. Wainwright adjusted its outlook on Century Therapeutics (NASDAQ:IPSC), reducing the price target to $9.00 from the previous $11.00, while reaffirming a Buy rating on the stock.
The adjustment follows the activation of the first clinical trial site for the Phase 1 CALiPSO-1 study, which is focused on systemic lupus erythematosus (SLE). This trial is significant as it evaluates CNTY-101 in patients with moderate-to-severe SLE and lupus nephritis (LN) who have not responded to at least two standard immunosuppressive treatments.
The company is continuing to open additional trial sites across the United States and anticipates initial clinical data from the CALiPSO-1 study by the end of 2024. Century Therapeutics has also indicated plans to file additional regulatory submissions for CNTY-101 targeting autoimmune diseases with limited treatment options and a high unmet need in the second half of 2024.
The decision to adjust the price target came after a review of recent ASCO data for CNTY-101 in B cell malignancies, which revealed a promising safety profile for the highest dose level of CNTY-101 in the ongoing Phase 1 study in SLE. The analyst noted that SLE is not currently included in their valuation model, suggesting that there could be potential upside if the trials prove successful.
The revised price target also reflects updates to the firm's financial model, including adjustments to projected operating expenses. Despite the lower price target, the continued Buy rating indicates a positive outlook on Century Therapeutics' stock performance over the next 12 months.
In other recent news, Century Therapeutics has been the focus of notable developments. Piper Sandler, an investment firm, increased the price target for Century Therapeutics from the previous $9.00 to $12.00, maintaining an Overweight rating on the company's stock.
This revision comes ahead of Century's initiation of the Phase I CALiPSO-1 study of its CD-19 iNK CNTY-101 in Systemic Lupus Erythematosus (SLE), with initial results expected in 2024. The company also plans to investigate the treatment's potential in other autoimmune diseases.
Century Therapeutics presented promising Phase I ELiPSE-1 data at the recent American Society of Clinical Oncology meeting, showing an overall response rate of 40% in B cell lymphoma patients. The company is set to increase the dose of CNTY-101 to 3.0B cells and plans to release more ELiPSE-1 data later this year.
Furthermore, Century Therapeutics has acquired Clade Therapeutics in a strategic move to enhance its pipeline. This acquisition provides Century with access to preclinical alpha-beta CAR-iT cells, including CLDE-308 for autoimmune diseases and B-cell lymphoma, and CLDE-361 for myasthenia gravis.
In terms of financials, Piper Sandler estimates Century's pro forma cash at approximately $295 million. The firm's analysts remain confident in Century's trajectory, with their note underscoring the anticipation of further data and the expansion of Century's treatment applications.
InvestingPro Insights
Amidst the strategic developments and clinical trials at Century Therapeutics, current financial metrics from InvestingPro provide a deeper understanding of the company's market position. With an adjusted market capitalization of $134.7 million, Century Therapeutics remains a notable player in the biotechnology sector focused on innovative therapies. The company's P/E ratio stands at -0.8, reflecting investor sentiment about its earnings potential, while the adjusted P/E ratio for the last twelve months as of Q2 2024 is -1.16, indicating a challenging earnings landscape.
InvestingPro Tips highlight the company's negative Revenue Growth of -55.28% for the last twelve months as of Q2 2024, suggesting that Century has faced significant revenue challenges recently. However, the quarterly revenue growth figure of 678.79% for Q2 2024 implies a substantial increase in revenue during that period, which could be a sign of recovery or the result of a strategic pivot. The fair value estimates from analysts and InvestingPro offer additional perspectives, with analysts targeting a fair value of $12.00, while InvestingPro's fair value assessment is at $2.49.
For investors seeking a comprehensive analysis, InvestingPro provides additional tips, currently listing a total of 15 InvestingPro Tips that delve into various aspects of Century Therapeutics' financial health and market potential. These insights can aid in making informed decisions about the company's stock, especially in light of its ongoing clinical trials and recent acquisition of Clade Therapeutics.
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