Analyst Bullish On SQZ Biotech's Technology For Solving Cell Therapy Challenges

  • HC Wainwright initiated coverage on SQZ Biotechnologies Company SQZ with a Buy rating and a price target of $10.
  • SQZ is focused on developing novel therapeutic cell therapy platforms centering around the company's Cell Squeeze technology. 
  • The analyst writes that there is significant potential for the Cell Squeeze technology for many disease areas and oncology indications. 
  • The likely next target in oncology is KRAS G12D and/or G12V mutations, given positive preclinical results which showed antigen-specific CD8+ T cells which were more effective than active control.
  • The company's pipeline currently consists of four cell therapy platforms. 
    • The Antigen Presenting Cell (APC) platform is the furthest along in development, with initial proof of concept data achieved in collaboration with Roche Holdings AG RHHBY, which adds credibility to the technology. 
    • The enhanced APC (eAPC) platform improves on the APC platform.
    • The activating antigen carrier (AAC) platform consists of engineered red blood cells (RBCs) with the Cell Squeeze technology to comprise tumor-specific antigens.
    • The tolerizing antigen carrier (TAC) platform induces antigen-specific immune tolerance in vivo utilizing a similar approach as the AAC platform; the initial indication is celiac disease (IND expected 1H23). 
  • The APC program will have updated data, and the eAPC and AAC programs will have initial data in 4Q22, creating multiple potential significant catalysts before year-end.
  • Price Action: SQZ shares are up 6.74% at $3.01 on the last check Thursday.
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