Atara Biotherapeutics stock hits 52-week low at $5.3

In a challenging year for Atara Biotherapeutics Inc (NASDAQ:ATRA)., the biopharmaceutical company's stock has tumbled to a 52-week low, touching down at $5.3. This latest price level reflects a stark decline in investor confidence, as the stock has experienced a precipitous drop of -71.66% over the past year. According to InvestingPro data, the company's financial health score stands at 1.98 (Fair), with analysts setting price targets between $11 and $17. The company, which specializes in developing treatments for diseases that involve the immune system, has faced headwinds that have severely impacted its market valuation, leading to this new low point in its stock performance. Investors are closely monitoring Atara's strategic moves and potential pipeline developments that might signal a turnaround for the beleaguered stock. InvestingPro analysis reveals the company is quickly burning through cash, with a concerning current ratio of 0.48 and negative gross profit margins. Get access to 11 more exclusive ProTips and detailed financial metrics with InvestingPro.

In other recent news, Atara Biotherapeutics has been navigating several developments that have captured investor attention. The company announced a significant workforce reduction following a Complete Response Letter (CRL) from the FDA regarding its EBVALLO application, which also led to the halt of several clinical trials. This decision is expected to incur approximately $7.5 million in severance and related costs. Analysts at H.C. Wainwright maintained a Neutral rating on Atara's stock, reflecting the challenges posed by the FDA's decisions.

Stifel analysts adjusted their outlook on Atara Biotherapeutics, reducing the price target from $10 to $5, while maintaining a Hold rating. This adjustment follows the FDA's clinical holds on two therapies, ATA3219 and EBVALLO, due to issues at a third-party manufacturing facility. Meanwhile, Canaccord Genuity lowered its price target to $17 from $21 but reiterated a Buy rating, expressing confidence in resolving manufacturing issues related to EBVALLO.

Atara reported having $43 million in cash and short-term investments at the end of 2024 and recently secured a $15 million equity line of credit from Redmile. The company is working with a financial advisor to explore strategic options and has a non-binding term sheet with Redmile Group for additional funding. Despite the regulatory setbacks, Atara remains committed to securing approval for EBVALLO in the U.S., with a potential resubmission within six months.

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