On Wednesday, Citi analyst David Lebowitz maintained a Buy rating and $70.00 price target on Celldex Therapeutics (NASDAQ:CLDX) stock. The endorsement follows the release of preliminary data from Jasper Therapeutics' Phase 1b/2a BEACON study, which tested briquilimab, an antibody targeting c-Kit (CD117), in treating chronic spontaneous urticaria (CSU). Jasper Therapeutics, with a market capitalization of $115 million, has seen its stock decline over 17% in the past week, according to InvestingPro data.
Jasper Therapeutics, which is not covered by Citi, revealed that their study achieved complete responses at each dose level, with the highest dose of 240mg showing a 26.6% reduction in UAS7, a urticaria activity score, from baseline at week 8. Despite these headline results, Lebowitz pointed out that the data presented a less clear efficacy picture, with an unclear dose response and variable efficacy signals over time, particularly in the small 240mg dose cohort consisting of only three patients.
InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 7.61, though it's currently unprofitable and burning through cash rapidly. Subscribers to InvestingPro can access 8 additional key insights about Jasper's financial health and market position.
Lebowitz also noted that while the treatment was generally well tolerated, there were instances of Grade 1 neutropenia in three cases and one case of Grade 3 neutropenia. These observations are pertinent as safety profiles are critical in evaluating the potential success of treatments in clinical trials.
The analyst suggested that Jasper's findings mitigate competitive concerns for Celldex, as the data does not present a clear threat to Celldex's positioning in the CSU market. Jasper Therapeutics plans to initiate a registrational CSU program in the second half of 2025 and aims to expand the BEACON trial to gather additional supporting data.
In other recent news, Jasper Therapeutics has made significant strides in its clinical trials. The company has reported encouraging preliminary results from its BEACON Phase 1b/2a study evaluating briquilimab, a novel antibody therapy, in treating chronic spontaneous urticaria (CSU). The study observed significant improvements in disease symptoms with a favorable safety profile. In addition, Jasper Therapeutics received clearance from Health Canada to commence a Phase 1b/2a clinical trial for briquilimab as a potential treatment for asthma.
Despite these promising developments, the company experienced a significant drop in its stock value following the release of the early-stage trial results. This drop was attributed to the trial results, which failed to meet investor expectations. Nevertheless, analysts from various firms including H.C. Wainwright, BMO Capital Markets, and Stifel have maintained positive ratings on Jasper Therapeutics.
H.C. Wainwright analyst Emily Bodnar confirmed a Buy rating and a $40.00 price target on Jasper Therapeutics shares, while BMO Capital Markets maintained their Outperform rating with a steady price target of $63.00.
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