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On Wednesday, H.C. Wainwright analyst Andrew S. Fein adjusted the price target for Tscan Therapeutics Inc (NASDAQ:TCRX), reducing it to $10.00 from the previous $15.00, while maintaining a Buy rating on the company’s shares. Currently trading at $1.36, the stock sits well below its 52-week high of $9.69, with a market capitalization of approximately $77 million. According to InvestingPro analysis, TCRX appears undervalued based on its Fair Value metrics. Fein’s reassessment follows Tscan’s promising clinical trial results for its lead hematologic assets, TSC-100 and TSC-101, which are being evaluated as potential new standards of care in post-transplant treatments for acute myeloid leukemia (AML), myelodysplastic syndromes (MDS), and acute lymphoblastic leukemia (ALL).
The ongoing Phase 1 ALLOHA trial has demonstrated low relapse rates of just 8% among subjects receiving the treatment, compared to 33% in the control group. Notably, no relapses have been observed beyond the median relapse time seen in controls, indicating a favorable trend in event-free survival data. These clinical outcomes are supported by consistent biomarker data, including full donor chimerism and measurable residual disease (MRD) negativity, suggesting durable disease control.
Fein noted that safety profiles have remained clean across all three dose levels administered in the trial, with no dose-limiting toxicities. The tolerability of the treatment is further evidenced by low-grade cytokine release syndrome and manageable rates of acute graft versus host disease (GvHD), without any indication of immune effector cell-associated neurotoxicity syndrome (ICANS) or high-grade cytokine release syndrome (CRS). InvestingPro data shows the company maintains a strong current ratio of 8.14, suggesting robust short-term liquidity to support ongoing clinical development. The few relapses that did occur were in atypical clinical scenarios, which are not expected to be repeated under a registrational study protocol.
TSC-101 is anticipated to enter a pivotal trial later in the year, leveraging a synthetic control arm to assess relapse-free survival with a targeted hazard ratio of 0.60. The therapy’s potential as an adjuvant strategy to prevent relapse is particularly notable due to its broad HLA applicability and the absence of a need for a companion diagnostic.
The analyst also remarked on the current market environment, citing sustained multiple compression across small and mid-cap biotech sectors. To reflect a more risk-averse sentiment, Fein has adjusted the valuation framework by lowering price-to-earnings multiples and increasing discount rates. This recalibration aligns with the current investor outlook, which is characterized by a heightened cost of capital and a diminished appetite for early-stage clinical risk. With a beta of 1.06, TCRX shows moderate market sensitivity. Despite these market conditions, H.C. Wainwright reaffirms a positive outlook on Tscan Therapeutics, as reflected in the reiterated Buy rating, albeit with a reduced price target. Analyst consensus remains bullish, with price targets ranging from $3 to $15. For comprehensive analysis and detailed financial metrics, investors can access the full Pro Research Report available on InvestingPro, which provides deep-dive analysis of this and 1,400+ other US stocks.
In other recent news, Tscan Therapeutics Inc shared updated results from its clinical studies at the American Society of Hematology 2024 conference. These updates focused on the progress of Tscan’s TCR-T therapies, particularly TSC-100/101, which showed promising results. The therapy demonstrated a relapse rate of 8% in the treatment arm compared to 33% in the control group, indicating a notable improvement. Additionally, TSC-100/101 showed a 70% improvement in event-free survival, although the probability of relapse did not reach statistical significance due to limited follow-up time and a small sample size. Analyst Andrew S. Fein from H.C. Wainwright reaffirmed a Buy rating for Tscan, maintaining a $15 price target based on these findings. Fein expressed confidence in the company’s potential in both liquid and solid tumors. The analyst also highlighted a clear path to approval for Tscan’s therapies, with a pivotal study expected to commence in the second half of 2025. These developments underscore the potential for Tscan’s therapies in cancer treatment.
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