On Friday, Rodman & Renshaw initiated coverage on Atara Biotherapeutics (NASDAQ:ATRA), assigning a Buy rating to the biopharmaceutical company's stock along with a price target of $25.00. The firm's analysis highlighted Atara's focus on the development of T-cell immunotherapies aimed at treating cancer and autoimmune diseases.
The company's proprietary platform, licensed from Memorial Sloan Kettering Cancer Center, utilizes the biology of Epstein-Barr virus (EBV) to create treatments targeting B-cell mediated diseases. This technology involves engineered chimeric antigen receptors (CARs) or T-cell receptors (TCRs) without the need for TCR or human leukocyte antigen (HLA) gene editing, though a partial HLA match is necessary for patients.
While the company holds more cash than debt on its balance sheet, InvestingPro analysis indicates rapid cash burn and weak gross profit margins, factors that investors should monitor closely.
Atara has shifted its research direction after pausing its program aimed at progressive forms of multiple sclerosis, which was based on an EBV allogeneic T-cell construct. The company is now concentrating on developing a treatment for B-cell lymphoma and B-cell mediated autoimmune diseases with an advanced allogeneic CAR-T construct.
Rodman & Renshaw's valuation of Atara primarily hinges on the company's assets for autoimmune indications. The analyst firm believes that Atara stands out among allogeneic cell therapy developers for several reasons: the use of intact TCR, incorporation of the 1XX CAR, and the employment of T-cells with a memory stem cell phenotype. These elements could potentially give Atara's allogeneic CAR-T constructs a competitive edge in treating lymphoma and autoimmune diseases driven by B-cells.
The analyst's report also included a detailed overview of the potential for cell therapy to enhance the treatment arsenal against autoimmune diseases. The new coverage and positive outlook on Atara's stock reflect a recognition of the company's innovative approach to cell therapy development.
With projected revenue growth of 14% for the current year and a strong 11.6% return over the past six months, investors seeking deeper insights can access additional analysis and 12 more ProTips through InvestingPro.
In other recent news, Atara Biotherapeutics has seen significant developments. Financial services firm Stifel has increased the price target for Atara Bio shares to $10.00, maintaining a Hold rating. This adjustment comes in light of Atara's recent confirmation of its timeline to release clinical data on ATA3219 for non-Hodgkin lymphoma and initial data on Lupus Nephritis by mid-2025.
Atara Biotherapeutics further announced the appointment of Eric Hyllengren as the new Chief Operating Officer, who will also continue in his role as Chief Financial Officer. The company has secured $36 million in a stock sale, extending its cash runway into 2027, and is anticipating U.S. approval of its T-cell therapy product, tab-cel®.
Mizuho (NYSE:MFG) Securities upgraded Atara Biotherapeutics from a Neutral to an Outperform rating, despite reducing the price target to $18 from $25, maintaining a positive outlook on the company's core T-cell technology. Finally, Atara reported promising preclinical data on its allogeneic anti-CD19 chimeric antigen receptor (CAR) T-cell therapy candidate, ATA3219, currently under investigation in a Phase 1 trial for relapsed/refractory B-cell non-Hodgkin’s lymphoma. These are among the recent developments for Atara Biotherapeutics.
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