On Tuesday, H.C. Wainwright maintained its Buy rating and $34.00 stock price target for Checkpoint Therapeutics (NASDAQ:CKPT). This affirmation follows Checkpoint Therapeutics' recent announcement of a partnership with GC Cell to evaluate the combination of their cancer treatments. The collaboration will explore the potential synergistic effects of Checkpoint's cosibelimab and GC Cell's Immuncell-LC in cancer cell destruction.
Checkpoint Therapeutics and GC Cell will begin by conducting in vitro studies to assess the combination of cosibelimab, an antibody therapy, with Immuncell-LC, a cell therapy already approved for hepatocellular carcinoma adjuvant treatment.
If the initial studies yield positive results, they may proceed to in vivo and clinical studies. The strategic partnership aims to enhance the therapeutic arsenal of Checkpoint and potentially increase the spectrum of treatable diseases.
The collaboration is seen as a positive move to expand the potential reach of cosibelimab by combining it with a therapy that has an established efficacy and safety profile. The potential synergy between the two therapies could lead to increased efficacy and improved patient outcomes in cancer treatment.
On July 2, Checkpoint resubmitted its Biologics License Application (BLA) to the FDA for cosibelimab, anticipating approval by the end of 2024. The combination of cosibelimab's mechanism, which is antibody-dependent cellular cytotoxicity, and Immuncell-LC's CIK T cell response, has been shown to have synergistic effects in previous research.
H.C. Wainwright's reiteration of the Buy rating and price target reflects optimism about the collaboration's potential to enhance Checkpoint's product offering and the anticipated approval of the BLA for cosibelimab.
The firm views the partnership and combination approach as a positive development, given the previous studies that have demonstrated enhanced targeting and immune modulation through such synergistic effects.
In other recent news, Checkpoint Therapeutics has announced a definitive agreement for a registered direct offering and a concurrent private placement, aiming to raise approximately $12 million through the sale of about 5.85 million shares. The funds raised are intended for working capital and general corporate purposes. H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering.
In addition to this financial move, Checkpoint has completed the resubmission of a Biologics License Application (BLA) to the U.S. Food and Drug Administration (FDA) for their drug, cosibelimab. This resubmission follows a Complete Response Letter (CRL) from the FDA last year, which noted issues from a third-party manufacturing inspection, not the clinical data, safety, or labeling of cosibelimab.
Checkpoint reports that their resubmission strategy, agreed upon with the FDA, addresses all approvability deficiencies noted in the CRL. Cosibelimab, an anti-programmed death ligand-1 (PD-L1) antibody, is intended for patients with metastatic or locally advanced cutaneous squamous cell carcinoma (cSCC) who are unable to undergo curative surgery or radiation. These are the most recent developments for Checkpoint Therapeutics.
InvestingPro Insights
As Checkpoint Therapeutics (NASDAQ:CKPT) forges ahead with its strategic partnership with GC Cell, investors are monitoring the company's financial health and market performance. According to InvestingPro, Checkpoint holds a notable position with more cash than debt on its balance sheet, a reassuring sign for stakeholders concerned about the company's financial stability.
Moreover, the stock has demonstrated a significant return over the last week, indicating a positive market response in the short term. However, it is essential to note that the Relative Strength Index (RSI) suggests the stock is currently in overbought territory, which may warrant caution among investors looking for an entry point.
The company's performance metrics present a mixed picture. With a market capitalization of approximately $99.01 million, Checkpoint operates within a challenging financial context, reflected by a negative P/E ratio of -1.78 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -1.89. Gross profit margins have been weak, with a reported gross profit of -$36.17 million for the same period.
Despite these challenges, the company has experienced strong returns over the last month and three months, with price total returns of 18.4% and 48.52%, respectively. This suggests that investors are reacting to more than just the fundamentals, potentially factoring in the potential for Checkpoint's therapeutic offerings and strategic collaborations.
For more detailed analysis and additional InvestingPro Tips, including insights on Checkpoint's niche role in the industry and its short-term obligations compared to liquid assets, visit https://www.investing.com/pro/CKPT. There are 11 additional InvestingPro Tips available to help investors make informed decisions. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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