In a May 30 research note, analyst Tony Butler reported that ROTH Capital Partners initiated coverage on Adaptimmune Therapeutics Plc (ADAP:NASDAQ) with a Buy rating and a $7 per share price target. The current share price is around $3.69.
The analyst explained why Adaptimmune is a compelling investment.
The company has a platform called SPEAR, which stands for specific peptide enhanced affinity receptor, of "turbo-charged T-cell receptors that can compete with chimeric antigen receptor T cells," Butler highlighted. Currently, three SPEAR T-cell receptors (TCRs) are in clinical trials: ADP-A2M10 (targeting MAGE-A10), ADP-A2M4 (MAGE-A4) and ADP-A2AFP (AFP).
Adaptimmune engineers T-cell receptors using a "differentiated and highly optimized approach," Butler noted. Its TCRs have an enhanced ability to recognize cancer targets, significant because naturally occurring TCRs do this poorly.
Adaptimmune plans to launch its first TCR therapy, ADP-A2M4, in 2022. Early data from the ADP-A2M4 study in synovial sarcoma is "strong," wrote Butler. The overall response rate in this indication was 80% among the cohort receiving the highest dose.
A 60-patient, Phase 2 pivotal trial in synovial sarcoma and myxoid/round cell liposarcoma, called SPEARHEAD-1, is slated to start in the second half of 2019.
In addition, Butler noted, ADP-A2M4 could show promising data in esophageal cancer because it is highly associated with overexpression of MAGE-A4 mRNA. Accordingly, ROTH has factored esophageal cancer into its current valuation of Adaptimmune.
Other key points, Butler indicated, are that Adaptimmune is working on next generation programs and has its own facility for internally developing cell products for clinical trials and possibly manufacturing them for commercialization.
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Disclosures from ROTH Capital Partners, Adaptimmune Therapeutics plc, Company Note, May 30, 2019
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
ROTH makes a market in shares of Adaptimmune Therapeutics PLC and as such, buys and sells from customers on a principal basis.
Shares of Adaptimmune Therapeutics PLC may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.
