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Investing.com - Mizuho (NYSE:MFG) downgraded Adaptimmune Therapeutics plc (NASDAQ:ADAP) stock rating from Outperform to Neutral on Wednesday, slashing its price target to $0.50 from $1.50 due to concerns about the company’s financial sustainability. The stock, which has declined over 70% in the past year and currently trades at $0.25, maintains a market capitalization of $67 million.
The research firm cited solvency and future sustainability as its main concerns for Adaptimmune, despite expressing encouragement about the initial success of the company’s US commercial launch of Tecelra, which it described as impressive compared to another recent cell therapy product launch. InvestingPro data shows the company holds more cash than debt on its balance sheet, though it’s quickly burning through available funds.
Mizuho noted that Adaptimmune faces significant near-term liquidity challenges as management attempts to balance maximizing the Tecelra launch while keeping operating expenses low enough to maintain financial stability.
The downgrade also reflected uncertainty surrounding the outcome of Adaptimmune’s bank-assisted strategic review and a lack of catalysts that could improve the company’s outlook.
Mizuho concluded that Adaptimmune’s outlook "simply seems too challenging," suggesting the current stock price may already reflect market concerns about the company’s financial situation.
In other recent news, Adaptimmune Therapeutics has reported its fourth-quarter 2024 financial results, highlighting the initial sales of its new therapy, Tecelra. The company achieved net sales of $1.2 million from the first two patients treated in the last quarter of 2024 and anticipates invoicing for approximately seven patients in the first quarter of 2025. Adaptimmune has successfully activated 20 authorized treatment centers and aims to reach 30 by the end of 2025. H.C. Wainwright has adjusted the price target for Adaptimmune stock to $3.00, down from $3.50, while maintaining a Buy rating. Guggenheim Securities also lowered its price target from $3.00 to $1.75 but continues to recommend a Buy, noting Adaptimmune’s cost-saving measures and workforce reduction. Meanwhile, Context Therapeutics announced the appointment of Dr. Karen Chagin as its new Chief Medical (TASE:BLWV) Officer to advance its T cell therapies. Dr. Chagin will receive a stock option award for 153,000 shares of Context’s common stock as part of her employment agreement.
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