H.C. Wainwright maintains Neutral on Lyell Immunopharma stock

On Thursday, H.C. Wainwright reiterated a Neutral rating on Lyell Immunopharma (NASDAQ:LYEL) shares, with a steady price target of $1.00. The stock, currently trading at $0.67, has experienced significant volatility, declining over 71% in the past year. According to InvestingPro analysis, the company maintains a strong balance sheet with more cash than debt, though it’s currently burning through cash reserves. The firm’s commentary highlighted the ongoing development of Lyell Immunopharma’s IMPT-314, a dual-targeting CD19 x CD20 CAR-T candidate for patients with relapsed/refractory large B-cell lymphoma (LBCL) who have not previously been treated with CAR-T therapies.

The analysts are closely monitoring the progress of IMPT-314, particularly looking forward to more mature data from the current Phase 1/2 trial in the third-line (3L+) setting and initial data from the second-line (2L) setting. These results are anticipated to be shared in mid-2025. InvestingPro data shows the company’s financial health score is rated as FAIR, with analysts not expecting profitability this year. Get access to 10+ additional exclusive ProTips and comprehensive financial metrics with InvestingPro. The firm noted the high efficacy benchmarks set by existing standard of care (SOC) therapies, such as the Yescarta ZUMA-7 trial for 2L treatment, which reported complete response (CR) rates of 65% and median overall survival (mOS) that has not yet been reached.

The report underscored the competitive landscape for new CAR-T therapies, mentioning that for a new therapy to be adopted over established treatments, it would need to demonstrate substantial superiority. The analysts expressed particular interest in the upcoming 2L data for IMPT-314, which they plan to compare against the results from the ZUMA-7 trial.

H.C. Wainwright’s update also conveyed a degree of caution, pointing out the narrowed efficacy differentiation for IMPT-314 since earlier single-center trial results and the added risk this poses for the product’s success in displacing the current SOC. The firm’s maintained price target reflects a cautious outlook on the stock’s performance over the next 12 months. Trading at 0.52 times book value, InvestingPro analysis suggests the stock is currently undervalued, though investors should note the company’s significant cash burn rate and lack of profitability over the last twelve months.

In other recent news, Lyell Immunopharma has been notified by Nasdaq regarding non-compliance with the minimum bid price requirement. The company’s stock has closed below $1.00 for 33 consecutive business days, triggering this notice. While this does not immediately affect its listing on the Nasdaq Global Select Market, Lyell Immunopharma has until July 22, 2025, to regain compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive business days. The company is exploring various measures to address this issue, including a potential reverse stock split, though success is not guaranteed. If Lyell Immunopharma fails to meet the requirement by the deadline, it may receive an additional 180 days if it transfers to The Nasdaq Capital Market and fulfills other initial listing standards, excluding the bid price. The company has acknowledged the risks involved in meeting Nasdaq’s continued listing requirements, as outlined in its SEC filings. Investors are closely monitoring the situation, as failure to comply could result in a delisting notice. Any appeals against a delisting would adhere to Nasdaq’s Listing Rules, but the outcome remains uncertain.

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