On Thursday, Stifel, a financial services firm, adjusted its price target for Vor Biopharma Inc. (NASDAQ: VOR) to $12 from the previous $15 while keeping a Buy rating on the stock. The revision reflects a more cautious outlook on the company's commercialization timeline and financing assumptions, balanced by a reduction in projected operating expenses beyond fiscal year 2024.
Vor Biopharma is currently conducting clinical trials for innovative treatments targeting acute myeloid leukemia (AML). The company is expected to release several significant data points in the second half of 2024. These include updated results from the Phase 1/2a VPB101 trial, which involves a novel cell therapy known as trem-cel for patients with relapsed or refractory AML, and initial findings from the Phase 1/2 VBP301 trial that evaluates the efficacy of VCAR33-Allo in AML patients who have relapsed after standard treatments or trem-cel transplants.
The analyst noted the removal of the last patient enrollment stagger in the VPB101 trial, which is anticipated to expedite the enrollment process. This change is set to pave the way for a comprehensive data update in the latter half of 2024. These developments are expected to enhance the understanding of Vor Biopharma's first-in-class treatment approach.
Furthermore, the VCAR33-Allo, a CAR-T therapy, is believed to be phenotypically superior. Commentary from the company's management indicating that more than one participant from the earlier VPB101 trial will be included in the upcoming VBP301 results is expected to offer insights into the longer-term development plans for the combined trem-cel/VCAR33-Allo Treatment System.
The reduction in the price target to $12 primarily accounts for the anticipated delay in the commercialization of the Treatment System and updated financing projections. However, these factors are partially mitigated by a decrease in the forecasted operating expenses for fiscal year 2024 and beyond.
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