BTIG’s Dane Leone believes that while Juno Therapeutics Inc JUNO has the most robust CD19 CAR T datasets among its competitors, it is trailing in terms of timelines for regulatory approval and commercialization.
Leone initiated coverage of the company with a Sell rating and price target of $23.
“We are generally skeptical of current investor expectations for the CD19 CAR T market, given the limited datasets and potential competition from CD19 bi-specific antibodies,” the analyst explained.
Leone expects ASH 2016, scheduled for December, to be a key catalyst for Juno Therapeutics’ stock since the company’s competitors are expected to present their first pivotal CD19 datasets at the event.
The analyst estimates total revenue of $482 million for the company, based on the commercialization of JCAR015 and JCAR017. The estimate is currently below the consensus forecast.
“Our market model for the current generation of CD19 targeted CAR T-cell therapies estimates that the class will reach ~$1.7 billion of sales by 2020,” Leone stated.
The analyst expects Juno Therapeutics to attain the third highest market share within the CD18 class at 26 percent.
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