PHILADELPHIA - Carisma Therapeutics Inc. (NASDAQ: CARM) and Moderna , Inc. (NASDAQ: NASDAQ:MRNA) today announced an expansion of their collaboration to develop new treatments for autoimmune diseases using Carisma’s proprietary CAR-M technology and Moderna's mRNA/LNP platform. The partnership, which initially focused on oncology, will now include two specific autoimmune disease targets.
Under the terms of the expanded agreement, Carisma will continue its work on the discovery and optimization of development candidates, while Moderna will lead clinical development and commercialization efforts. Carisma is set to receive research funding and could earn milestone payments and royalties on net sales of any commercialized products.
Steven Kelly, President and CEO of Carisma, expressed optimism about the potential of their CAR-M technology to address a broader range of diseases, including those beyond cancer. Lin Guey, PhD, CSO of Therapeutic Research Ventures at Moderna, echoed this sentiment, highlighting the synergy between Carisma's myeloid biology expertise and Moderna's platform.
The collaboration aims to leverage the capabilities of both companies to deliver innovative therapies for patients with cancer and autoimmune diseases. The financial details of the agreement include development, regulatory, and commercial milestones, plus royalties for Carisma, though specific figures were not disclosed.
Carisma emphasizes that their focus remains on engineered macrophages and monocytes, which are central to innate and adaptive immune responses. The company is based in Philadelphia, PA, and continues its clinical stage biopharmaceutical work on a range of serious diseases.
This press release contains forward-looking statements about the companies' expectations, plans, and prospects. These statements are subject to various risks and uncertainties that could cause actual results to differ materially from those anticipated. Carisma cautions that the forward-looking statements made in the release are as of today, and the company undertakes no obligation to update these statements.
The information in this article is based on a press release statement from Carisma Therapeutics Inc.
In other recent news, Carisma Therapeutics Inc. has seen several significant developments. The biopharmaceutical company's novel cellular therapy, CT-0525, has been granted Fast Track designation by the FDA, a status that is expected to expedite the development and review process. This therapy is designed for patients with tumors overexpressing HER2 who have not responded to existing treatments.
In addition, Carisma Therapeutics has expanded its Scientific Advisory Board (SAB) with the appointment of two key opinion leaders in liver fibrosis, Dr. Scott Friedman and Dr. Ira Tabas. These appointments are expected to guide the company's program in creating treatments for advanced liver disease.
Furthermore, the company has announced significant changes to its board of directors, with the election of Marella Thorell and David Scadden, M.D., as directors. This followed the resignation of board members Regina Hodits, Ph.D., and Björn Odlander, M.D., Ph.D.
Analyst firm H.C. Wainwright has maintained a Buy rating for Carisma Therapeutics, reflecting confidence in the potential regulatory benefits that the Fast Track designation could bring to CT-0525's development timeline. Meanwhile, Evercore ISI has adjusted its price target for the company to $4.00, maintaining an Outperform rating. BTIG has also initiated coverage on Carisma Therapeutics with a Buy rating. These are the recent developments for the company.
InvestingPro Insights
As Carisma Therapeutics Inc. (NASDAQ: CARM) embarks on an expanded collaboration with Moderna, Inc. (NASDAQ: MRNA), investors and industry watchers are keenly observing the company's financial health and market performance. Here are some key insights from InvestingPro that shed light on Carisma's current situation:
InvestingPro data indicates that Carisma has a market capitalization of approximately $41.96 million, reflecting the company's size in the biopharmaceutical industry. Despite the potential for their CAR-M technology, Carisma is not expected to be profitable this year, with a negative P/E ratio of -0.57 as of the last twelve months leading up to Q2 2024. This aligns with the company's strategy of investing heavily in research and development, which is common in the biotech sector.
One notable metric is the company's revenue growth, which stands at a robust 57.95% for the last twelve months as of Q2 2024. This growth is indicative of Carisma's potential in expanding its therapeutic reach, as highlighted by the recent partnership with Moderna. However, it's important to note that Carisma is quickly burning through cash and suffers from weak gross profit margins, with a gross profit margin of -246.38% in the same period.
InvestingPro Tips suggest that while Carisma holds more cash than debt on its balance sheet, providing some financial stability, the valuation implies a poor free cash flow yield. Additionally, the stock has seen significant price volatility, with a substantial decline over the last year, although there has been a strong return over the last month.
For investors considering Carisma's stock, these insights are crucial to understanding the company's financial position and market dynamics. For a more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/CARM, which can provide deeper insights into Carisma's financial metrics and stock performance.
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