H.C. Wainwright maintains $45 target on Cartesian stock

Published 28/01/2025, 13:32
H.C. Wainwright maintains $45 target on Cartesian stock

On Tuesday, H.C. Wainwright reaffirmed a Buy rating on Cartesian Therapeutics shares, maintaining the $45.00 price target, representing a significant upside from the current trading price of $19.42. The firm's analyst, Mitchell S. Kapoor, provided insights following Cartesian Therapeutics' recent regulatory update. According to InvestingPro data, analyst consensus remains bullish with price targets ranging from $22 to $45. The biotechnology company announced it had received a written agreement from the U.S. Food and Drug Administration (FDA) regarding its upcoming Phase 3 AURORA trial for Descartes-08, its leading mRNA cell therapy candidate for treating myasthenia gravis (MG).

The FDA's agreement comes via the Special Protocol Assessment (SPA) process, which confirms that the proposed design for the AURORA trial is adequate to support a future Biologics License Application (BLA), contingent on the study's results. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 10.7, providing adequate resources for trial execution. The Phase 3 trial is a randomized, double-blind, placebo-controlled study that aims to evaluate the efficacy of Descartes-08 compared to a placebo. The trial will involve around 100 participants diagnosed with acetylcholine receptor autoantibody-positive (AChR Ab+) MG.

The primary goal of the AURORA trial is to measure the proportion of participants treated with Descartes-08 who show an improvement of at least three points in their MG-ADL score at the four-month mark compared to those receiving the placebo. Descartes-08 will be administered as six once-weekly infusions without the need for preconditioning chemotherapy. The trial is expected to commence in the second half of 2025.

Cartesian Therapeutics' progress with the FDA is a significant step in the development of Descartes-08 as a potential treatment for MG. With a market capitalization of approximately $500 million, the company appears overvalued according to InvestingPro Fair Value calculations. The analyst's reiterated Buy rating and price target reflect confidence in the company's direction and the anticipated outcomes of the upcoming Phase 3 trial. InvestingPro subscribers have access to 5 additional key insights about Cartesian Therapeutics' financial health and growth prospects.

In other recent news, Cartesian Therapeutics has been making significant strides in its clinical trials and operations. The biotech firm recently reported substantial results from its Phase 2b trial of Descartes-08, a potential treatment for generalized myasthenia gravis (MG). The trial demonstrated a 71% improvement in MG Composite scores in the Descartes-08 group, compared to a 25% improvement in the placebo group.

In a strategic move, Cartesian converted its Series B Non-Voting Convertible Preferred Stock into common stock, resulting in 23,893,525 shares of Common Stock issued and outstanding. This decision could simplify the company's capital structure and potentially broaden its shareholder base.

Analyst firms have shown confidence in Cartesian's progress. BTIG initiated a Buy rating on Cartesian's stock with a price target of $42, highlighting the firm's innovative approach in developing mRNA-based CAR-T cell therapies. H.C. Wainwright adjusted its outlook on the company, raising its price target from $41.00 to $45.00 and maintaining a Buy rating. Similarly, Mizuho (NYSE:MFG) reaffirmed its Outperform rating, underlining the competitive edge of Descartes-08.

These are recent developments for Cartesian Therapeutics, reflecting the company's ongoing efforts in advancing its mRNA cell therapy candidates and strategic financial decisions.

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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