Buy Atara's T-Cell Potential, Stock Could Nearly Double: Canaccord

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  • The share price of Atara Biotherapeutics, Inc. ATRA has risen almost 8 percent over the past trading five days.
  • Canaccord Genuity’s John Newman has initiated coverage of Atara Biotherapeutics with a Buy rating and price target of $80.
  • Newman believes that the company has several assets with “impressive” clinical data, as well has near term catalysts to the stock.

The company’s “high profile” T-cell program have demonstrated robust efficacy and their peak worldwide sales are estimated at $730 million. The T-cell therapies being developed by Atara Biotherapeutics aim to treat diseases caused the cytomegalovirus and Epsterin-Barr virus infections, post solid organ and stem cells transplants.

According to the Canaccord report, “Atara’s T-cells can be generated and banked for later usage and do not require patient-specific generation, saving time and simplifying manufacturing. The platform could also be used in many other diseases beyond the lead indications.”

Another pipeline “blockbuster in dialysis” is PINTA-745, which is a myostatin blocker that helps build lean muscle mass. Phase 2 data on this candidate is expected by year-end 2015, with estimated peak US sales of $1.6 billion and peak EU sales estimated at $830 million by 2025.

In addition, Newman believes that the company’s experienced management team is “key to delivering value.” The team is led by Dr. Isaac Ciechanover, a former partner at Kleiner Perkins and business development executive at Celgene Corporation CELG.

The company’s Chief Medical Officer, Dr. Christopher Haqq, not only has experience at Amgen, he was also “the lead clinician for a pivotal Zytiga study in prostate cancer leading to market approval.”

Also, the licensing deal that Atara Biotherapeutics has signed with Sloan Kettering for its T-cell programs and the deal with Amgen, Inc. AMGN for Atara Biotherapeutics’ peptibodies represent “tangible value.”

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Posted In: Analyst ColorInitiationAnalyst RatingsCanaccord Genuity
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