HC Wainwright: Celyad's CAR-T Pipeline Has Potential

CELYAD SA/ADR CYAD bolstered its entirely bullish cohort of analysts Monday with a fresh buyer.

The Rating

HC Wainwright analyst Edward White initiated coverage of Celyad with a Buy rating and $45 price target.

The Thesis

The chimeric antigen receptor therapy, or CAR-T,  pipeline is led by CYAD-01, a treatment for solid and liquid tumors that's in a Phase 1 dosing escalation study.

“We believe that by targeting eight different ligands, CYAD-01 is differentiated from currently approved CAR-T therapies and those in development,” the analyst said, noting that early safey data is “compelling.”

The drug demonstrated the world’s first complete response in relapsed/refractory acute myeloid leukemia, White said. The affected patient was still surviving 10 months after treatment, well beyond median the AML survival rate of below four months, he said.

If Phase 1 results prove positive, White said he expects a Phase 2 pivotal trial to begin in 2020 on a trajectory for 2022 approval.

In solid tumors, CYAD-01 demonstrates the potential to disrupt blood supply and modulate the immunosuppressive environment, according to HC Wainwright.

Early data from the dose escalation portion of the Phase 1 study in colorectal cancer yielded promising activity, and full figures are expected in November, White said. 

“CYAD-01 could usher in a paradigm shift in cell-based immuno-oncology for solid tumors."

Assuming 2022 approval, HC Wainwright forecast 2026 revenue of $596 million for colorectal cancer and $239 million for AML.

Price Action

Celyad shares were trading down 1.58 percent to $30.50 at the time of publication Monday afternoon. 

Related Links:

Benzinga's Daily Biotech Pulse: Verastem Uprooted On Stock Offering, Titan Pharma Earnings

HC Wainwright: G1 Therapeutics Is Targeting 'Potential Blockbuster' Oncology Markets