Read Why Did HC Wainwright Cut Price Target On Atara Biotherapeutics

  • Late last week, Atara Biotherapeutics Inc ATRA announced that Bayer AG BAYRY intends to terminate the exclusive worldwide licensing agreement for Atara's mesothelin-targeted allogeneic and autologous CAR-T assets, ATA3271 and ATA2271.
  • The enrollment was paused in the Phase 1 trial of ATA2271 for mesothelioma after a patient death. The move followed a strategic review and asset-level prioritization.
  • While Atara will continue to support this trial, the company does not plan to submit an Investigational New Drug (IND) application for ATA3271. It aims to reassess the strategy for its mesothelin-targeted CAR-T programs. 
  • H.C. Wainwright conservatively removed forecasted revenues for ATA2271 and ATA3271 from its model. 
  • It reiterates a Buy rating while lowering the price target to $29 from $31.
  • The analysts look forward to upcoming catalysts in 2022 and 2023, which include:
    • An interim analysis of ATA188 Phase 2 EMBOLD trial in progressive forms of multiple sclerosis in June 2022.
    • Clarification on potential tab-cel FDA application pathways for EBV+ PTLD in 2Q22/3Q22.
    • Potential EU approval of tab-cel in EBV+ PTLD in 4Q22.
    • Updated Phase 1 results for ATA2271 in advanced mesothelioma in 2H of 2022.
    • Phase 2 results for tab-cel in EBV+ cancers in 2023.
  • Price Action: ATRA shares are down 2.52% at $5.03 during the market session on the last check Monday.
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