Truist maintains $11 target on Autolus stock amid strong demand

Published 20/03/2025, 18:22
Truist maintains $11 target on Autolus stock amid strong demand

Thursday

Truist Securities has reaffirmed its Buy rating and $11.00 price target for Autolus Therapeutics plc (NASDAQ:AUTL) stock. The firm’s analyst highlighted the robust demand for Autolus’s Aucatzyl, noting that the company has surpassed its initial goal for site activations. As of March 19, Autolus has activated 33 centers for Aucatzyl, exceeding the target of 30 by the end of the first quarter of 2025. With a market capitalization of $472 million and a strong current ratio of 13.69, InvestingPro analysis indicates the company maintains solid liquidity to support its expansion plans. For deeper insights into Autolus’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. This progress follows approximately 20 Advanced Therapy Centers (ATCs) being prepared in January, even before the official approval of Aucatzyl.

Despite this promising start, Truist Securities remains cautious for the first half of 2025. The analyst pointed out that while the number of activated ATCs suggests strong demand, various factors could delay treatment, such as operational challenges, reimbursement issues, and patient scheduling. Additionally, the rapid progression of adult Acute Lymphoblastic Leukemia (ALL) might lead physicians to opt for alternative treatments. As a result, the uptake of Aucatzyl might be slow initially, but it is expected to stabilize and potentially lead to more significant sales figures in the second half of the year.

The report also mentions that Aucatzyl has been made available on a single case approval basis during the early stages of reimbursement negotiations, which can take three to four weeks for approval. Truist Securities anticipates that only a small number of patients have been treated with Aucatzyl in the first quarter, estimating no more than five patients based on available information.

Autolus’s strategy for deploying ATCs has been well-planned, according to Truist Securities, with about half of the centers being part of the ROCCA consortium. The company has also targeted other large sites and regions previously untapped, such as Texas and the Midwest. Autolus aims to have 60 centers by the end of 2025. The upcoming New Technology Add-on Payment (NTAP) decision in the fourth quarter is expected to provide additional financial incentives for centers to choose Aucatzyl over competing therapies like Tecartus.

Looking ahead, Truist Securities sees the data presentation on Obe-cel for systemic lupus erythematosus (SLE) as a significant upcoming milestone. InvestingPro data shows the company’s impressive revenue growth of 82.7% over the last twelve months, with analysts forecasting continued strong growth. While the company currently operates at a loss, with an EBITDA of -$210.8 million, its robust cash position relative to debt provides financial flexibility for its development programs. The analyst anticipates a robust data set to be revealed at the April 23 research and development event, with more follow-up data to be presented at a medical meeting in the second half of 2025. The data will cover product properties, safety, activity, and follow-up on six patients, which is expected to boost investor interest in Autolus’s application of CAR-T therapies for autoimmune diseases.

In other recent news, Autolus Therapeutics reported a net loss of $220.7 million for the fourth quarter of 2024, an increase from the previous year’s loss of $208.4 million. Despite this, the company significantly bolstered its cash reserves to $588 million by the end of 2024, largely due to a $600 million collaboration with BioNTech (NASDAQ:BNTX) and equity financing. The company is optimistic about its future, with plans to expand its authorized centers to 60 by the end of the year. Autolus also received FDA approval for Ocassol without requiring a REMS program, which is a regulatory system to manage medication risks. Analysts have shown interest in the company’s developments, with Deutsche Bank (ETR:DBKGn) and Goldman Sachs posing questions about the commercial launch and logistics. The company is preparing for regulatory submissions in the EU and UK, with decisions expected in the second half of 2025. Additionally, Autolus is focusing on expanding its market presence and addressing regulatory challenges in Europe. The company’s financial strategy and recent FDA approval are seen as positioning it well for future growth.

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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