Crispr Therapeutics shares tumble after significant earnings miss
Investing.com - H.C. Wainwright reduced its price target on Jasper Therapeutics (NASDAQ:JSPR) to $20.00 from $40.00 on Monday, while maintaining a Buy rating on the stock. The company, currently trading at $3.09, appears undervalued according to InvestingPro analysis, despite showing a significant -61.77% return over the past six months.
The significant price target reduction primarily reflects delays in the company’s chronic spontaneous urticaria (CSU) program, with H.C. Wainwright now projecting U.S. market launches for CSU and chronic inducible urticaria (CIndU) in 2030 and 2031, respectively.
H.C. Wainwright noted Jasper’s recent cost-cutting initiatives, which include pausing development programs in asthma and Severe Combined Immunodeficiency (SCID) to preserve cash runway.
The firm anticipates a 25% decline in operating expenses in the third quarter of 2025 compared to estimated second-quarter expenses, reflecting these cost-reduction measures.
Despite the operational adjustments, H.C. Wainwright expects Jasper Therapeutics will need to raise approximately $5 million in additional capital around the fourth quarter of 2025, based on company guidance.
In other recent news, Jasper Therapeutics has faced significant challenges due to manufacturing issues affecting its clinical trials. The company reported that a specific drug product lot compromised results in its BEACON Phase 1b/2a study of briquilimab for chronic spontaneous urticaria, affecting two dosing cohorts. This setback has delayed the expected data readout to the fourth quarter of 2025 and pushed the Phase 2b study to mid-2026. Additionally, the same manufacturing problems led Jasper to halt its ETESIAN asthma trial and discontinue development in severe combined immunodeficiency. Despite these obstacles, Jasper reported promising efficacy data from certain cohorts, with 89% of participants in the 240mg and 360mg single-dose groups achieving a complete response. H.C. Wainwright maintained its buy rating on Jasper Therapeutics, citing positive urticaria data, while Citizens JMP reiterated a Market Outperform rating, highlighting the extended efficacy period and favorable safety profile of the treatment. Jasper is implementing cost-cutting measures to address these challenges and extend its cash runway.
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