Piper Sandler hsa maintained its Overweight rating on Gritstone bio (NASDAQ:GRTS) with a steady price target of $3.00. The firm's analyst highlighted that Gritstone is expected to reveal more developed data from its GRANITE study in September, with overall survival (OS) data to follow next year.
These results could potentially serve as the primary endpoint for a Phase III trial planned to commence in 2025.
Gritstone's GRANITE study, which is focused on a cancer vaccine, did not meet its primary endpoint in a comparison of ctDNA response against the 5 FU+Avastin control. However, Phase II data indicated an early, albeit non-significant, progression-free survival (PFS) benefit.
In 1st-line MSS-CRC maintenance patients, the hazard ratio (HR) was 0.82, and for fast progressors, the HR was 0.52 out of a subset of 44 patients, with a median PFS of 12 months compared to 7 months for the control group.
The financial position of Gritstone was also noted in the analysis, with the company concluding the second quarter of 2024 with $61.7 million in cash. However, the company is also carrying a debt of $40.5 million. Despite the mixed results from the GRANITE study, Piper Sandler's stance on Gritstone remains positive, as evidenced by the reaffirmed $3 price target.
The forthcoming data from the GRANITE study in September and the OS data expected in the following year will be critical for Gritstone's future, particularly regarding the potential Phase III trial.
Gritstone bio held a significant annual stockholders meeting, where key proposals were voted upon, including the election of two Class III director nominees, the ratification of the company's independent registered accounting firm, and advisory votes on executive compensation.
Elaine Jones, Ph.D., and Clare Fisher were elected to the Board of Directors with notable majorities. Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
In the realm of executive compensation, stockholders approved the compensation of the company's named executive officers and expressed a preference for an annual advisory vote on such compensation.
These developments follow Gritstone bio's significant strides in the biotechnology sector, particularly with its GRANITE personalized vaccine for microsatellite stable colorectal cancer.
Despite a notable debt and a 40% workforce reduction, Gritstone bio ended the first quarter of 2024 with $52.8 million in cash and raised an additional $32.5 million in financing. Analyst firms JMP Securities, Piper Sandler, and Jones Trading have set price targets for Gritstone, maintaining a positive outlook.
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