Analyst Bullish On Calidi Biotherapeutics, Newly Listed Cancer Treatment Player

Baird initiates coverage on Calidi Biotherapeutics Inc CLDI, which uses allogeneic stem cells to deliver oncolytic viruses to tumors for cancer treatment.

Just a month back, Calidi Biotherapeutics became the latest biotech to take the special purpose acquisition company route to the public market.

The analysts Joel Beatty and Benjamin Paluch have initiated the coverage of the company with an Outperform rating and a price target of $9.

Early clinical data with a single dose of lead agent CLD-101 have been published in Lancet Oncology and showed a near doubling of progression-free survival and overall survival in some glioma patients. 

A multi-dose trial is underway, and data from this study in 2024 could move the stock higher. 

The company's flagship product, CLD-101, utilizes allogeneic neural stem cells infused with an engineered oncolytic adenovirus, conveniently packaged as a cryopreserved, readily deployable vial. 

Research findings indicate that these stem cells serve as a protective shield for the therapeutic oncolytic viruses upon administration, impeding their rapid clearance by the patient's immune system. This safeguarding mechanism facilitates the effective delivery of the viruses to the patient's tumor.

In CLD-101, Baird has incorporated a 30% likelihood of approval for high-grade glioma. CLDI is operating with a relatively brief cash runway of approximately 12 months, already exerting downward pressure on the stock. CLDI's academic partnerships, grant funding, and the possibility of licensing its stem cell platform to other firms can collectively alleviate the company's current financial challenges.

Price Action: CLDI shares are up 1.71% at $2.97 on the last check Monday.