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On Tuesday, H.C. Wainwright analyst Arthur He adjusted the price target on Adaptimmune Therapeutics plc (NASDAQ:ADAP) stock to $3.00, a decrease from the previous $3.50, while continuing to recommend a Buy rating for the company. The new target represents significant upside potential from the current price of $0.20, though the stock has faced considerable headwinds, declining over 86% in the past year. Adaptimmune, a biopharmaceutical company, has recently reported its financial results for the fourth quarter of 2024, which included the initial sales of its new therapy, Tecelra (afami-cel). According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value assessment.
During the fourth quarter of 2024, Adaptimmune commenced the commercialization of Tecelra, with three patients undergoing apheresis, a process necessary for the treatment. This momentum increased in the first quarter of 2025, with ten patients apheresed. The company achieved net sales of $1.2 million from the first two patients treated in the last quarter of 2024 and anticipates invoicing for approximately seven patients in the first quarter of 2025. While the company’s revenue grew significantly by 195% in the last twelve months, InvestingPro data indicates analysts expect sales to decline in the current year.
Adaptimmune has successfully activated 20 authorized treatment centers (ATCs) and is on course to reach its target of 30 ATCs by the end of 2025. The company noted that the ten patients apheresed in the first quarter of 2025 were treated at only five of the ATCs that were activated in 2024. With the activation of additional ATCs, the company expects an increase in both the number of apheresis procedures and Tecelra sales during the year.
The management team at Adaptimmune has confirmed that the company is not facing any challenges with manufacturing or reimbursement for Tecelra. This assurance suggests that the revenue growth could primarily be influenced by the rate of patient adoption of the therapy. H.C. Wainwright projects that afami-cel will generate sales of $138 million by 2030, starting from an estimated $35 million in 2025.
In conclusion, despite the reduction in the price target to $3.00 from $3.50, H.C. Wainwright maintains a positive outlook on Adaptimmune stock, underpinned by the strong launch and anticipated growth trajectory of Tecelra.
In other recent news, Adaptimmune Therapeutics reported its fourth-quarter 2024 financial results, revealing product revenue of $1.2 million. The company is targeting $25 million in sales for 2025, driven by the launch of its lead asset, Tecelra. Adaptimmune has also amended its loan agreement with Hercules Capital (NYSE:HTGC), Inc., prepaying $25 million on the principal. This financial move is part of the company’s strategic efforts to manage capital effectively. Additionally, Adaptimmune has paused its preclinical programs targeting PRAME and CD70, expecting to save approximately $75-$100 million over the next four years.
Analyst firms have adjusted their outlooks on Adaptimmune, with Guggenheim Securities lowering the price target to $1.75 but maintaining a Buy rating, while Scotiabank (TSX:BNS) reduced its target to $1.40, retaining a Sector Outperform rating. Mizuho (NYSE:MFG) Securities reiterated its Outperform rating with a price target of $1.50, noting the strategic changes aimed at cost savings. Adaptimmune has engaged a bank to explore strategic options to address financial stability concerns. The company is also focusing on expanding its treatment centers and exploring strategic partnerships to bolster growth.
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