Piper Sandler has affirmed its Overweight rating on shares of Poseida Therapeutics, Inc (NASDAQ: PSTX), maintaining a $10.00 price target.
The endorsement follows Poseida's presentation at the International Myeloma Society meeting, where the company reported a 91% overall response rate (ORR) in a study involving heavily pre-treated relapsed/refractory multiple myeloma (r/rMM) patients.
The study tested 2M P-BCMA-ALLO1 cells with increased cy/flu lymphodepletion, yielding a 22% complete response (CR/sCR) and 48% very good partial response (VGPR+) among the 23 participants.
The treatment, P-BCMA-ALLO1, demonstrated a favorable safety profile with no dose-limiting toxicities (DLTs), graft versus host disease (GvHD), or severe cytokine release syndrome (CRS) or immune effector cell-associated neurotoxicity syndrome (ICANS). Poseida, in collaboration with Roche, is currently advancing a Phase Ib study of the therapy with an enhanced lymphodepletion regimen.
Poseida Therapeutics has also been granted the Regenerative Medicine Advanced Therapy (RMAT) designation for P-BCMA-ALLO1 as a third-line treatment for r/rMM. Additional updates are anticipated as the company is set to present initial data on P-CD19CD20-ALLO1 at the American Society of Hematology (ASH) meeting. On November 14th, Poseida plans to disclose Phase I updates for P-MUC1C-ALLO1 in solid tumors and will host a CellRx Research & Development day.
Moreover, Poseida is preparing to present preclinical data on P-KLKB1-101, a potential therapy for hereditary angioedema (HAE), at the American College of Allergy, Asthma & Immunology (ACAAI) in October. The company reported a solid financial position, concluding the second quarter of 2024 with $238 million in cash, anticipated to fund operations into the second half of 2025.
Poseida Therapeutics reported promising interim clinical data from its Phase 1 trial of P-BCMA-ALLO1, an allogeneic CAR-T cell therapy for relapsed/refractory multiple myeloma (RRMM).
The therapy, developed in collaboration with F. Hoffmann-La Roche Ltd, demonstrated a 91% overall response rate (ORR) in a subset of heavily pretreated patients, with no reported cases of severe cytokine release syndrome or neurotoxicity.
In addition, the U.S. Food and Drug Administration granted Regenerative Medicine Advanced Therapy (RMAT) designation to Poseida's P-BCMA-ALLO1, indicating its potential to address an unmet medical need in the multiple myeloma patient population.
InvestingPro Insights
To complement Piper Sandler's positive outlook on Poseida Therapeutics, Inc (NASDAQ:PSTX), recent InvestingPro data provides additional context for investors. Despite the company's promising clinical developments, it's important to note that Poseida is not currently profitable, with a negative gross profit margin of -77.23% over the last twelve months as of Q2 2023. This aligns with an InvestingPro Tip indicating that the company suffers from weak gross profit margins.
However, Poseida's financial position appears stable in the short term. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which is crucial for a biotech firm investing heavily in research and development. This is further supported by another tip noting that Poseida's liquid assets exceed its short-term obligations, providing a financial cushion as it advances its clinical pipeline.
For investors considering Poseida's long-term potential, it's worth noting that the company's fair value, according to analyst targets, is $12 USD, significantly higher than its current trading price. This suggests potential upside if the company's clinical trials continue to yield positive results.
InvestingPro offers 7 additional tips for Poseida Therapeutics, providing a more comprehensive analysis for interested investors.
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