On Friday, H.C. Wainwright adjusted its stock price target for TC BioPharm (NASDAQ:TCBP), a biotechnology company, to $3.00 from the previous $7.00 while maintaining a Buy rating.
The adjustment comes as the firm updates its financial model for the company, taking into account several key factors impacting the business and its market valuation. With the stock currently trading at $0.64 and showing a significant decline of nearly 98% year-to-date according to InvestingPro data, investors face challenging market conditions.
The firm's revision reflects a shift in the expected launch timing of TC BioPharm's TCB008 AML program, with the estimated market introduction now set for 2028 instead of the earlier projection of 2025. This delay has necessitated changes in the valuation model used to determine the company's price target.
Moreover, H.C. Wainwright has increased the discount rate in its model from 12% to 13%. This change is attributed to the tougher environment for cell therapies, as evidenced by the modest outcomes from development-stage cell therapies and the trend of discontinuations in oncology-focused cell therapy programs among early-stage biotech firms.
The firm also accounted for changes in the capital structure of TC BioPharm, specifically the new 200:1 ratio of shares to American Depository Receipts (ADRs). This restructuring has had a significant impact on the firm's valuation of the company's stock.
Despite these adjustments, H.C. Wainwright reiterated its Buy rating on TC BioPharm. The revised price target and the maintained positive outlook suggest the firm's continued confidence in the company's prospects, despite the challenges and adjustments noted in their report.
In other recent news, TC BioPharm has made significant advancements in its clinical trials and operational initiatives. The biotechnology company has reported progress in its ACHIEVE UK trial, administering increased dosages of its cancer treatment TCB008 to patients.
The expansion of the trial to new sites indicates growing interest in the therapy. TC BioPharm has also initiated a compassionate use program in the UK and US, which has garnered physician interest for TCB008's application in various cancer forms.
The company has signed two non-binding letters of intent for acquisitions to broaden its cell therapy portfolio and announced a collaboration with a leading infectious disease expert in the UK to develop a treatment for Mpox.
TC BioPharm has also partnered with a university for an AI-driven donor screening initiative. Financially, TC BioPharm has reduced its cash burn by 50% in Q1 2024 and secured an $8 million capital injection from an investor group.
TC BioPharm has publicly refuted rumors regarding its Nasdaq listing status, confirming that it remains fully compliant with all Nasdaq listing requirements and has no intention of delisting.
The company has also expressed its intention to acquire a biotechnology firm specializing in Chimeric Antigen Receptor T-cell therapies for cancer treatment, subject to satisfactory negotiations, adequate financing, and necessary third-party approvals. These are recent developments at TC BioPharm.
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