Zhou summed up Cellular Biomedicine Group Inc.'s (CBMG:NASDAQ) recent activities in an Aug. 9 research report. "CBMG's cell therapy programs continue to make progress," she wrote. "We expect to see data from both the CARD-1 and CALL-1 chimeric antigen receptor T-cell (CAR-T) studies by 2017E, setting the stage for a value inflection as CBMG becomes a Phase 2 CAR-T player."
The analyst also noted the company has enough cash to get to that stage. "CBMG ended the period with $27M in cash," Zhou noted. "At the current burn rate, we estimate CBMG has sufficient capital to fund through topline data releases (by 2017E) from its CARD-1 and CALL-1 studies, which should represent catalysts for the stock."
She reiterated what the company's two China-based Phase 1 studies consist of:
1. Initiated in Q1/17, CALL-1 is a "dose-escalation study (n=9) that uses the optimized proprietary C-CAR011 construct of CD19 CAR-T therapy in patients with relapsed or refractory CD19+ B-cell acute lymphoblastic leukemia. . .Good data should translate into a larger Phase 2 trial," Zhou wrote.
2. CARD-1 is a "nine-patient, dose escalation study evaluating safety efficacy and C-CAR011 cell persistence in patients with relapsed or refractory diffuse large B-cell lymphoma. . .Patient enrollment (n=9) is currently underway," said Zhou.
In other news, Cellular Biomedicine "received a $2.3M award from California Institute for Regenerative Medicine to support the company's allogeneic human adipose-derived mesenchymal stem cells AlloJoin for the treatment of knee osteoarthritis in the U.S.," indicated Zhou.
Looking forward, by the end of 2017, the biomedicine firm "expects to have a combined 70,000 square feet of GMP manufacturing space between Shanghai, an expanded Wuxi-based facility and the facility in Beijing," said Zhou. "These three facilities could simultaneously support clinical development of five CAR-T and stem cell therapy products, or up to 10,000 patient CAR-T treatments and 10,000 stem cell therapies per year."
These developments are the result of Cellular Biomedicine's previously announced collaboration with GE Healthcare Life Sciences China, Zhou added, "to co-develop industrial control processes in CAR-T and stem cell manufacturing."
Maxim Group has a Buy rating and 12-month target price of $18 per share on the company. Its stock currently trades at roughly $8.50 per share.
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