Healthcare and Biotechnology Analyst Jonathan Aschoff, Ph.D. of ROTH Capital Partners LLC commented in a July 22 research note that the firm is adjusting its valuation for Cellectar BioSciences Inc. (CLRB:NASDAQ; CLRB:OTCBB). Cellectar Biosciences is a late-stage clinical biopharmaceutical company focused on the discovery, development and commercialization of drugs for the treatment of cancer.
The research firm previously assigned a Buy rating for the company with a 12-month price target of $10.00/share.
At the close of trading on Thursday, July 21, 2022, the company announced a 1:10 reverse stock split which reduced the total number of common shares outstanding in the company to approximately 6.1 million (6,110,125). Therefore, ROTH noted it had updated its long-term financial model and modified the 12-month price target.
The analyst stated that results from the company's pivotal Iopofosine I 131 (CLR 131) trial in lymphoplasmacytic lymphoma/ Waldenstrom macroglobulinemia (LPP/WM), a type of non-Hodgkin's lymphoma, are expected to be forthcoming at YE/22. ROTH believes that the trial will be successful which would serve to substantially increase Cellectar's market cap above its present near-cash valuation.
ROTH emphasized that its valuation for Cellectar is based solely upon the potential applications for iopofosine in treating multiple myeloma (MM) and LPL/WM within the U.S. market.
Cellectar Biosciences is a late-stage clinical biopharmaceutical firm based in Florham Park, N.J. The firm uses its proprietary platform to develop next-generation Phospholipid Drug Conjugates (PDCs) that are designed specifically to target cancer cells. These PDCs, which the company plans to develop both independently and collaboratively, are believed to offer safer and improved efficacy with fewer off-target effects.
The analyst listed that "iopofosine is a small-molecule PDC designed to provide targeted delivery of iodine-131 (radioisotope)." The company is presently conducting a global pivotal expansion study of up to fifty patients to evaluate the effectiveness of iopofosine in treating relapsed or refractory WM patients who have received at least two prior lines of therapy. In addition, the firm is investigating iopofosine in treating highly refractory MM and relapsed/refractory cancer in pediatric patients with sarcomas or brain tumors.
ROTH Capital Partners LLC indicated that is maintaining its Buy rating on Cellectar Biosciences Inc. but is now adjusting both its estimates for the company and its 12-month post reverse stock-split price target for Cellectar's shares to $40, up from the pre-split target of $10.
ROTH Capital advised that it arrived at its adjusted 12-month price target using discounted cash flow (DCF) methodology. The DCF calculations were made utilizing a 30% discount rate for all future cash flows generated and a terminal value of 4x projected 2030 operating income of $245 million.
Cellectar Biosciences Inc. shares trade on the Nasdaq market under the symbol "CLRB" and last closed for trading at $4.95 on Friday, July 22, 2022.
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Disclosures for Roth Capital Partners, Cellectar Biosciences Inc., July 22, 2022
ROTH makes a market in shares of Cellectar Biosciences, Inc. and as such, buys and sells from customers on a principal basis. Shares of Cellectar Biosciences, Inc. 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. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2022. Member: FINRA/SIPC.