JSPR up 15% (was up 30% earlier in the morning) on Citadel Fund (billionaire Ken Griffin) buy of the stock
Jasper Therapeutics (JSPR)
The last Griffin buy is a biotech company. Jasper Therapeutic is a clinical-stage researcher working on hematopoietic stem cell (HSC) therapies. These are the stem cells that give rise to mature human blood cells. Transplants of these stem cells are used to treat both immune system disorders and various cancers.
Jasper has one lead product, JSP191, a novel compound designed to assist and facilitate HSC transplant treatments. The drug candidate is a ‘targeted, humanized monoclonal antibody,’ under development as a clearing and conditioning agent for use prior to HSC transplant. JSP191 causes cell death in immature HSCs, leaving an open space in the bone marrow where transplanted stem cells can engraft and grow. JSP191 is designed to overcome limitations in current conditioning therapy, by acting as a non-toxic clearing agent, and removing one need for more dangerous chemotherapy.
Preclinical studies showed safe use of JSP191 in animal transplant models. The drug candidate is currently in two early stage human clinical trials. A Phase 1b trial for SCID (Severe combined immunodeficiency) is evaluating JSP191 as a sole conditioning agent. SCID is usually only treatable through HSC transplantation. A second trial, also at Phase 1b, is testing JSP191 in a combined therapy with another clearing agent, for use in the treatment of acute myeloid leukemia (AML) and myelodysplastic syndrome (MDS).
Jasper recently reported that the AML/MSD study is enrolling patients in expansion cohorts, and top-line interim data is expected in the first quarter of next year. And this week, the company announced that data on JSP191, showing its long-term benefits as a monotreatment clearing agent in the SCID study, will be presented at the 2021 American Society of Hematology (ASH) Annual Meeting, on December 12.
This is another company that has jumped on the SPAC bandwagon. Jasper merged with Amplitude Healthcare Acquisition Corporation, completing the transaction on September 24 of this year. The combination brought $100 million in gross proceeds to the biopharma, giving the company sufficient capital to operate through the middle of 2023.
Ken Griffin must really like this newly public stock. His firm bought 3,005,035 shares, taking a stake that’s now worth $24.3 million.
Wall Street, like Griffin, sees plenty to appreciate here. Credit Suisse, Judah Frommer writes: “We see promising preliminary safety and efficacy data for JSP191 – a reduced-intensity conditioning regimen for patients undergoing hematopoietic cell transplantation (HCT) – as supportive of a ~$500M peak sales opportunity in acute myeloid leukemia (AML) and myelodysplastic syndromes (MDS), underscored by a broadening addressable patient population. While initial severe combined immunodeficiency (SCID) results are encouraging, SCID’s ultra-orphan status likely limits the commercial opportunity but could de-risk other indications.”
"We see the potential for JSPR to emerge as an attractive M&A candidate if there is further de-risking of the pipeline assets. However, in the near term, we expect interest to be more limited as potential acquirers await clinical data for the various programs," the analyst added.
Frommer’s comments back his Outperform (i.e. Buy) rating, and his $15 price target indicates a potential for 86% share growth in the next 12 months. (To watch Frommer’s track record, click here)
All in all, Jasper shares get a unanimous thumbs up from the analyst consensus, with 4 recent Buy reviews adding up to a Strong Buy rating. The stock is priced at $8.06, while the $18.33 average price target indicates room for an impressive 127% growth on the upside. (See JSPR stock forecast on TipRanks)
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