Wedbush analysts Dr. David Nierengarten, Dr. Martin Fan, and Dennis Pak, in a research report published on September 6, 2024, provided an update on Vor Biopharma Inc. (VOR:NASDAQ) following the company's announcement of updated results for its Phase 1/2 VBP101 study of trem-cel + Mylotarg in AML or MDS, initial PK data for VCAR33ALLO, and the development of a new CD45 ADC. The analysts maintained their Outperform rating and a 12-month price target of US$11.00 on the stock.
The analysts highlighted the positive relapse-free survival (RFS) data from the VBP101 study, noting, "VOR presented RFS data — the median has not yet been reached in patients at a median follow-up of 169 days (6 months), which is the upper end of median RFS described in the literature for similar, high-risk patients." They added that historical data for comparable patient groups suggest median RFS of three to six months.
Regarding the new CD45 ADC program (VADC45), the analysts commented, "We view the conditioning regimen use case as having the fastest path toward commercial development, with limited competition and considerable partnership potential."
The Wedbush team also noted positive initial PK results for VCAR33ALLO, stating, "Initial PK results for VCAR33ALLO demonstrated in vivo expansion at the lowest dose of 1 x 106 cells/kg, with dose escalation planned up to 1 x 107 cells/kg."
Vor Biopharma's strategic focus includes advancing trem-cel towards a pivotal trial, with plans to discuss this with the FDA by year-end 2024. The company is also expanding its pipeline with the new VADC45 program.
The analysts expressed a positive outlook on Vor Biopharma's prospects, stating, "With alignment on a pivotal study possible in the next six months and significant upside potential from CD45-based depletion approaches, we view VOR as an increasingly compelling value."
Wedbush's valuation methodology for Vor Biopharma is based on a sum-of-parts approach. "Our PT is derived from a sum-of-parts valuation for the company's VOR33 and VCAR33 programs: an 8x multiple of 2030E ww sales of VOR33 (discounted back by 35%), and an 8x multiple of 2031E ww sales of VCAR33 (discounted back by 40%)," the analysts explained.
With an Outperform rating and a price target of US$11.00, representing a potential return of approximately 1,241% from the price at the time of the report of US$0.82, Wedbush sees significant upside potential for Vor Biopharma.
The analysts concluded, "Shares continue to trade near or below cash even with additional de-risking of the lead trem-cel program, and we would be buyers ahead of planned regulatory updates and likely further data readouts."
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Disclosures for Wedbush, Vor Biopharma Inc., September 6, 2024
Analyst Certification We, David Nierengarten, Martin Fan and Dennis Pak, certify that the views expressed in this report accurately reflect our personal opinions and that we have not and will not, directly or indirectly, receive compensation or other payments in connection with our specific recommendations or views contained in this report.
Company Specific Disclosures This information is subject to change at any time. 1. WS makes a market in the securities of Vor Biopharma.
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