F Hutton analyst Jason Kolbert, in a research report published on September 30, 2024, maintained a Buy rating on Anixa Biosciences Inc. (ANIX: NASDAQ) with a price target of US$10.00. The report follows Anixa's announcement of an amendment to the protocol for its ongoing CAR-T therapy clinical trial for ovarian cancer, allowing for a second dose in certain patients.
Kolbert highlighted the significance of this development, quoting Dr. Robert Wenham, Chair of the Gynecologic Oncology Department at Moffitt and principal investigator: "In early Phase 1 trials, it's standard practice to start with low, often subtherapeutic cell doses to confirm safety before escalating the dose . . . We hope that a second, higher dose could improve her overall response and outcome. Generally, we expect higher cell doses to lead to efficacy, but in solid tumors, a second dose may be necessary for some patients to enhance the response rate and durability."
The analyst emphasized the unique approach of Anixa's CAR-T program, stating, "Anixa is developing a CAR-T program that targets a protein receptor — Follicle Stimulating Hormone Receptor (FSHR) . . . A CAR-T, where the CAR is FSH, and the antigen is FSHR, could be similar to the B-cell situation, translating into the first effective CAR-T therapy for a solid tumor."
Regarding Anixa's strategic plans, Kolbert noted the company's focus on localized intra-peritoneal delivery to "avoid system exposure and deliver a more potent dose to the target tumor."
Kolbert's valuation methodology for Anixa is based on therapeutic models for the company's lead products, including a breast cancer vaccine and the CAR-T therapy. He explained, "We apply a 60% POS and 30% discount rate (r) and assume additional capital raises in our final share count. We then apply these projections to our Free Cash Flow to the firm, or FCFF discounted EPS or dEPS and sum-of-the-parts or SOP models."
The analyst outlined several risk factors, including Clinical/Regulatory Risk, Partnership and Financial Risk, Commercial Risk, Legal and Intellectual Property Risk, and Market Share Risk. He also noted the company's reliance on licenses from Wistar for their CAR-T technology and Cleveland Clinic for the breast and ovarian cancer vaccine technologies.
In conclusion, EF Hutton's maintenance of a Buy rating and US$10 price target reflects a positive outlook on Anixa Bioscience's potential in developing novel cancer therapies, particularly its CAR-T program for ovarian cancer. The share price at the time of the report of US$3.19 represents a potential return of approximately 213% to the analyst's target price.
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Disclosures for EF Hutton, Anixa Bioscience, September 30, 2024
Analyst Certification I, Jason Kolbert, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subject company(ies). 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 research report.
Company-Specific Disclosures EF Hutton LLC, or its affiliates have received compensation from Anixa Biosciences, Inc. for investment banking services within the past 12 months.
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