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Poseida stock supported by strong data from P-BCMA-ALLO-1, says BTIG

EditorEmilio Ghigini
Published 09/30/2024, 06:14 PM
PSTX
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On Monday, BTIG maintained a Buy rating on Poseida Therapeutics, Inc (NASDAQ:PSTX) stock with a steady price target of $12.00 following the presentation of updated data from the company's P-BCMA-ALLO-1 study at the IMS Conference over the weekend.

The data highlighted from Arm C of the trial, which involves a higher lymphodepletion (LD) regimen, indicated a competitive efficacy profile that aligns with BCMA auto CAR-T and bispecifics. This is especially notable given the median follow-up of less than 3.5 months and the robust safety profile observed.

The study's 91% overall response rate (ORR) and 22% stringent complete response (sCR)/complete response (CR) rate were underscored as impressive outcomes, considering patients had undergone a median of six prior lines of therapy and 62% had previous exposure to BCMA therapies.

These patients represent one of the most refractory populations in relapsed/refractory multiple myeloma (r/r MM) cell therapy and bispecific trials.

The durability of these responses is the next critical metric to watch, as it will help determine the potential positioning of the P-BCMA-ALLO-1 program within the myeloma treatment framework. BTIG suggests that the encouraging data could increase the accessibility of cell therapy in earlier treatment lines and offer an alternative for patients who have relapsed after CAR-T therapies.

Currently, Poseida Therapeutics is progressing with the Phase 1b expansion using the Arm C LD regimen. Additionally, the company is exploring higher cell doses and the possibility of repeat dosing to further improve the treatment's efficacy profile.

Investors and stakeholders are advised to look forward to further updates from the P-BCMA-ALLO-1 program, which are expected in the second half of 2024, potentially at the American Society of Hematology (ASH) conference.

In other recent news, Poseida Therapeutics reported significant findings from its Phase 1 trial of P-BCMA-ALLO1, an investigational CAR-T therapy for relapsed/refractory multiple myeloma (RRMM). The trial demonstrated a 91% overall response rate in the optimized lymphodepletion arm, including a 100% response rate in BCMA-naïve patients. These results were presented at the 21st International Myeloma Society Annual Meeting.

The U.S. Food and Drug Administration (FDA) granted Regenerative Medicine Advanced Therapy (RMAT) designation to Poseida's P-BCMA-ALLO1, reflecting its potential to address an unmet medical need in the multiple myeloma patient population. The RMAT status expedites the development and review of regenerative medicine therapies for serious or life-threatening diseases.

The therapy, developed in collaboration with Roche, showed a promising safety profile with no dose-limiting toxicities and low rates of cytokine release syndrome and immune effector cell neurotoxicity syndrome, both Grade 2 or less.

Poseida Therapeutics is continuing to enroll new patients in the ongoing Phase 1/1b trial using the Arm C lymphodepletion regimen. These are the recent developments in Poseida Therapeutics' mission to advance allogeneic cell therapies and genetic medicines to treat cancer and rare diseases.

InvestingPro Insights

Poseida Therapeutics' recent clinical data presentation has garnered positive attention, but it's crucial to consider the company's financial health alongside its research progress. According to InvestingPro data, Poseida has a market capitalization of $281.65 million, reflecting its current market valuation. The company's revenue for the last twelve months as of Q2 2024 stands at $88.46 million, with a quarterly revenue growth of 29.78% in Q2 2024, indicating some positive momentum in its operations.

However, InvestingPro Tips highlight some financial challenges. The company is not profitable over the last twelve months, with a negative gross profit margin, suggesting difficulties in cost management. This aligns with the article's focus on the importance of the P-BCMA-ALLO-1 program's potential success for Poseida's future.

On a positive note, Poseida holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. This financial cushion could be crucial as the company continues to invest in its promising clinical programs.

For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 7 more InvestingPro Tips available for Poseida Therapeutics, which could provide a deeper understanding of the company's financial position and market potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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