Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
Tuesday, H.C. Wainwright analyst Emily Bodnar increased the price target for Briacell Therapeutics (NASDAQ:BCTX) to $32 from the previous $15, while maintaining a Buy rating on the stock. The company, currently trading at $5.04, has seen its shares decline 91% over the past year, according to InvestingPro data. This adjustment follows the announcement on Monday that Briacell’s Phase 1 trial evaluating Bria-OTS, a second-generation immunotherapy for metastatic breast cancer, showed a patient with resolution of a lung metastasis. With a market capitalization of just $14.91 million, the clinical-stage biotechnology company maintains a healthy current ratio of 1.65, though InvestingPro analysis indicates the company is quickly burning through its cash reserves.
Bria-OTS, which was genetically engineered to include 15 HLA types, has the potential to match 99% of the breast cancer population. This new therapy is considered "personalized" as patients are HLA matched prior to receiving treatment, differing from the company’s earlier treatment, Bria-IMT, where patients are matched after enrollment.
The first patient, a 78-year-old woman with HR+/HER2- metastatic breast cancer, was treated on November 21, 2024. Despite failing several prior lines of therapy, after two months on Bria-OTS, she experienced complete resolution of a lung metastasis and stability in other metastatic and organ areas. The patient received the lowest dose in the Phase 1/2a dose escalation study and was dosed every two weeks.
The Phase 1 trial is currently assessing Bria-OTS as a standalone treatment, with future plans to combine it with checkpoint inhibitors (CPIs) such as BeiGene (NASDAQ:ONC)’s tislelizumab. The strategy to use Bria-OTS in combination with CPIs is already being explored with Bria-IMT in the company’s ongoing Phase 3 trial.
Bodnar expressed optimism about the efficacy of Bria-OTS, even at low doses and as a monotherapy, which she believes demonstrates a quick proof of concept for the personalized treatment approach. The analyst anticipates that higher doses and combination therapies will likely show further disease improvement and identify additional potential responders. Following the positive trial results and a 1-for-15 reverse stock split completed on January 27, the firm has reiterated its Buy rating with the new price target. InvestingPro data reveals the company’s overall financial health score is currently rated as WEAK, with additional insights available to subscribers, including 11 more ProTips and comprehensive financial metrics that could help investors make more informed decisions about this volatile biotech stock.
In other recent news, BriaCell Therapeutics reported a significant clinical response in the first patient treated with Bria-OTS, its novel immunotherapy for metastatic breast cancer. This development, part of a Phase 1/2a clinical trial, marks an advancement in addressing a disease with high unmet medical need. The trial is evaluating the safety and efficacy of Bria-OTS both as a monotherapy and in combination with an immune checkpoint inhibitor.
Simultaneously, H.C. Wainwright maintained its Buy rating on BriaCell Therapeutics, despite citing several risks that could potentially impact the company’s valuation. These risks include safety concerns from clinical or preclinical programs, clinical efficacy falling short of expectations, increased market competition, regulatory challenges, and the need for substantial future financing. The firm’s financial projections estimate that BriaCell will require approximately $297 million in additional funding through 2037.
In another development, BriaCell Therapeutics announced the resignation of board member Marc Lustig. No further details were provided regarding the reasons for his departure or information about a successor. BriaCell also reported improved progression-free survival in a Phase 2 clinical trial of its Bria-IMT regimen, a development that H.C. Wainwright recognized, maintaining a Buy rating for the company and adjusting its price target to $15.00.
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