Biotech Ideas

[gfp927z]

Blade, Phenomenal move, and I see that analysts have price targets of $10 and $20, so could be lots more to go :o)


>>> Why Shares of Gracell Biotechnologies Jumped Tuesday


Motley Fool

By Jim Halley

Jun 13, 2023


https://www.fool.com/investing/2023/06/13/why-shares-of-gracell-biotechnologies-jumped-tuesd/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

Two analysts upgraded their ratings for Gracell Biotechnologies' stock.

Over the weekend, Gracell announced positive follow-up trial data regarding its lead therapy.

The clinical-stage biotech has no revenue and cash of $186 million, as of the first quarter.

Gracell climbed higher for a second consecutive day.

What happened

Shares of Gracell Biotechnologies (GRCL 28.06%) were up 21.5% Tuesday afternoon. The healthcare stock rose for the second consecutive day, boosted by an analyst's upgrade, as well as by positive trial news. The stock is up more than 156% so far this year.

So what

Gracell is a clinical-stage biotech company that makes cell therapies to treat cancers and autoimmune diseases. Over the weekend, the company announced positive long-term follow-up trial data regarding its lead therapy, GC012F, to treat patients with relapsed/refractory B-cell non-Hodgkin's lymphoma. The CAR-T therapy is a CD19 and B-cell maturation antigen.

In the study, all nine patients showed an overall response rate nine months after the therapy, with 77.8% having a complete response (CR) rate at three months and 66.7% having a CR at six months. The study comes on the heels of an announcement on June 3 that said GC012F did well in long-term follow-ups as a therapy to treat relapsed/refractory multiple myeloma.

In likely responses to the trial data, BTIG analyst Justin Zelin reiterated his buy rating on the stock with a price target of $20, and analyst Joseph Catanzaro from Piper Sandler maintained his buy rating on Gracell, with a price target of $10.

Now what

The company's pipeline has 12 programs, including six potential indications for GC012F. That the therapy has shown a strong safety profile, as well as long-term efficacy, is a big deal, but it is still in early-stage trials.

It's also worth noting that the small patient population size -- only nine participants -- means it may be difficult replicating GC012F's results in a larger relapsed/refractory B-cell non-Hodgkin's lymphoma patient group.

The company had, as of the first quarter, $186 million in cash, enough to probably finance operations into 2026.

<<<



---