On Thursday, a Buy rating with a $20.00 stock price target was reiterated for Poseida Therapeutics, Inc (NASDAQ:PSTX) by H.C. Wainwright. This confirmation follows recent presentations of positive data from an ongoing study at the 2024 International Myeloma Society annual meeting on September 27. The study, conducted in collaboration with Roche, is evaluating P-BCMA-ALLO1 for the treatment of relapsed and refractory multiple myeloma (r/r MM).
The data highlighted from the study pertains to Arm C, where patients received an optimized lymphodepletion regimen and P-BCMA-ALLO1. As of the data cutoff date on September 6, 2024, an overall response rate (ORR) of 91% was reported in 23 evaluable patients.
Impressively, patients who had not previously undergone BCMA-targeted treatment showed a 100% ORR, while those who had received at least one prior BCMA-targeted therapy had an 86% ORR.
The study results also revealed that 22% of patients achieved a complete response (CR) or a stringent CR (sCR), and 48% achieved a very good partial response or better (VGPR+). P-BCMA-ALLO1 was well-tolerated with no dose-limiting toxicities, graft-vs-host disease, hemophagocytic lymphohistiocytosis, Parkinsonism, or cranial neuropathies observed.
The incidences of cytokine release syndrome and immune effector cell neurotoxicity syndrome were 39% and 13%, respectively, with no Grade 3 or higher events noted.
The initiation of the Phase 1b study in early September resulted in a $20 million milestone payment from Roche to Poseida. The financial terms stipulate that while Poseida maintains responsibility for the study, Roche will provide funding for it. This ongoing partnership and the promising study results have reinforced the analyst's conviction in P-BCMA-ALLO1's potential for treating r/r MM patients.
In other recent news, Poseida Therapeutics has reported promising results from its Phase 1 trial of P-BCMA-ALLO1, an allogeneic CAR-T cell therapy for relapsed/refractory multiple myeloma (RRMM). The trial, developed in collaboration with F. Hoffmann-La Roche Ltd, demonstrated a 91% overall response rate, with no reported cases of severe cytokine release syndrome or neurotoxicity.
The U.S. Food and Drug Administration granted Poseida's P-BCMA-ALLO1 Regenerative Medicine Advanced Therapy designation, highlighting its potential to address unmet medical needs in the multiple myeloma patient population.
In other developments, MaxCyte Inc. has expanded its Board of Directors with the appointment of biotech veteran Cynthia Collins. Collins brings with her extensive experience in cell therapy and genetic medicine, having held leadership roles at Editas Medicine (NASDAQ:EDIT), Human Longevity Inc., and GE Healthcare's Cell Therapy and Lab Businesses, among others.
Analysts at Piper Sandler and BTIG have maintained their positive ratings on Poseida Therapeutics, with Piper Sandler keeping an Overweight rating and BTIG maintaining a Buy rating. The ratings follow Poseida's presentation of a 91% overall response rate in its Phase 1 trial of P-BCMA-ALLO1. Poseida Therapeutics concluded the second quarter of 2024 with $238 million in cash, anticipated to fund operations into the second half of 2025.
InvestingPro Insights
While Poseida Therapeutics (NASDAQ:PSTX) shows promise in its clinical trials, investors should consider some key financial metrics from InvestingPro. The company's market capitalization stands at $246.69 million, reflecting its current valuation in the biotech sector. Despite the positive clinical data, Poseida faces financial challenges, as evidenced by its negative gross profit margin of -77.23% for the last twelve months as of Q2 2024.
InvestingPro Tips highlight that Poseida holds more cash than debt on its balance sheet, which could be crucial for funding ongoing research and development. However, the company is not profitable over the last twelve months, and analysts do not anticipate profitability this year. This aligns with the nature of biotech companies in the development stage, where significant investments are made before potential commercialization.
The stock's recent performance has been mixed, with a 24.51% price return over the past six months, but a -24.85% return in the last month. This volatility may reflect the market's reaction to clinical trial updates and broader sector trends.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Poseida Therapeutics, providing deeper insights into the company's financial health and market position.
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