BofA Starts Cellectis At Buy, Sees Plant Sciences As 'Hidden Gem'

In a report published Monday, BofA Merrill Lynch analyst Colin Bristow initiated coverage of

with a Buy rating and a price objective of $50. Cellectis is a cellular immunotherapy company seeking to use an "off the shelf" approach for T-cell based treatment that is not only cheaper but more scalable than the options offered by

and

. Analyst Colin Bristow pointed out that the company's allogenic approach would also reduce the latency period from treatment decision to receipt of therapy, while adding, "We expect clinical data in 2016 to validate CLLS' novel approach, which will serve to de-risk the platform." Cellectis is expected to launch its lead candidate UCART19 in 2021 with overall peak sales from its therapeutic platform estimated to be around $3 billion in 2032. In the report BofA Merrill Lynch noted, "While CLLS has not yet generated any clinical data, the CAR-T cell concept and various tumor targets that CLLS is pursuing have been validated by competitors." The preclinical data released by Cellectis is compelling enough to fuel optimism around the treatment's clinical success, the report said. Cellectis' plant sciences division, Calyxt, which aims to leverage the company's gene editing expertise to develop improved crops and food products was a "Hidden Gem," the report mentioned. "We view Calyxt as a significantly underappreciated facet of the CLLS story, one which could drive meaningful upside versus our estimates," Bristow wrote.