On Monday, Century Therapeutics (NASDAQ:IPSC) saw its price target increased to $12.00 from the previous $9.00 by investment firm Piper Sandler, while the firm retained its Overweight rating on the stock. The revision comes as Century gears up to begin the Phase I CALiPSO-1 study of its CD-19 iNK CNTY-101 in Systemic Lupus Erythematosus (SLE), with initial results anticipated in the fourth quarter of 2024. The company also plans to explore the treatment's application in other autoimmune diseases.
At the recent American Society of Clinical Oncology (ASCO) meeting, Century presented encouraging Phase I ELiPSE-1 data, where CNTY-101 showed an overall response rate of 40% in B cell lymphoma patients, which included three complete responses and one partial response. Significantly, no instances of graft-versus-host disease (GvHD) or dose-limiting toxicities (DLTs) were reported. Century is now increasing the dose of CNTY-101 to 3.0B cells and expects to release more ELiPSE-1 data later in the year.
In a strategic move to enhance its pipeline, Century has acquired Clade Therapeutics, gaining access to preclinical alpha-beta CAR-iT cells, including CLDE-308 for autoimmune diseases and B-cell lymphoma, and CLDE-361 for myasthenia gravis. This acquisition is seen as a step to cement Century's position in the field of induced pluripotent stem cell (iPSC)-derived cell therapies.
Piper Sandler's note highlighted Century's strong financial standing, estimating the company's pro forma cash at approximately $295 million. The firm's analyst expressed confidence in Century's trajectory, stating, "We reiterate our Overweight rating and are increasing our price target to $12 from $9." The anticipation of further data and the expansion of Century's treatment applications underpin the positive outlook on the company's stock.
In other recent news, Century Therapeutics revealed progress in its Phase 1 ELiPSE-1 study of CNTY-101, an immunotherapy for patients with relapsed or refractory non-Hodgkin lymphoma. The interim results suggest that CNTY-101 is well-tolerated with promising preliminary efficacy, especially at higher doses. Furthermore, Century Therapeutics plans to initiate a second Phase 1 clinical trial for CNTY-101 in patients with systemic lupus erythematosus.
In financial developments, Piper Sandler adjusted its outlook on Century Therapeutics by reducing its price target but retaining an Overweight rating. This follows Century Therapeutics' acquisition of Clade Therapeutics, which reinforced its position in the field of iPSC-derived cell therapies. The acquisition included preclinical assets such as CLDE-308 (CD19) and CLDE-361 (BCMA), for a total of $35 million in cash and stock.
Century Therapeutics is also expanding its clinical development for CNTY-101 to target additional autoimmune disease indications. The expansion is backed by a $60 million private placement led by Bain Capital Life Sciences, intended to extend the company's financial runway into 2026. Concurrently, Century acquired Clade Therapeutics, further enhancing its pipeline with three preclinical-stage programs and next-generation Allo-Evasion™ technology.
InvestingPro Insights
As Century Therapeutics (NASDAQ:IPSC) steps into a pivotal phase with its CD-19 iNK CNTY-101 study, the company's financial metrics reflect a challenging landscape. With an adjusted market cap of $260.34 million, the company's performance indicators reveal a negative P/E ratio of -2.26 for the last twelve months as of Q1 2024, suggesting investors are anticipating future growth despite current losses. The PEG ratio stands at 0.59, indicating potential undervaluation relative to expected earnings growth.
However, the company's revenue has seen a significant decline, with a -76.63% drop in the last twelve months as of Q1 2024, and a -50.29% quarterly decrease in Q1 2024. Such figures highlight the importance of the upcoming clinical trial results and the strategic acquisition of Clade Therapeutics to potentially reverse this trend. Despite these challenges, analysts have set a fair value target of $12, well above the current price of $3.13, which could signal a substantial upside if Century's initiatives bear fruit.
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