On Friday, Piper Sandler adjusted its stance on Achilles Therapeutics (NASDAQ:ACHL) stock, shifting from an Overweight rating to Neutral. The firm also significantly reduced the price target for the biotechnology company's stock to $2.00 from the previous target of $8.00. This decision followed the company's full-year 2023 earnings report and a pipeline update, which included new data from its CHIRON and THETIS studies.
Achilles Therapeutics' recent report highlighted that the addition of 18 new patients showed notable manufacturing improvements and an increased dose of cNeT cells. However, this did not lead to improved clinical activity, as no objective responses were observed.
The company is now modifying its protocol to include lymphodepletion and IL-2 regimens, which align with bulk TILs, in an effort to enhance cNeT persistence. Early data from three patients treated under the amended protocol have not yet indicated significant clinical profile changes.
Piper Sandler's adjustment reflects concerns over the current incremental progress of Achilles Therapeutics' neoantigen-reactivity approach in TIL therapy. The firm suggests that a major advancement is required for the company to demonstrate clinical activity that could potentially create a viable path forward.
As a result of these developments, Piper Sandler has pushed out the approval timelines for the company's therapies and increased the discount rate to 27.5% from the previous 22.5%.
InvestingPro Insights
Following the recent downgrade by Piper Sandler, Achilles Therapeutics (NASDAQ:ACHL) presents a mixed financial picture according to real-time data from InvestingPro. The company's Market Cap stands at a modest $36.82M, reflecting the challenges it faces in the competitive biotech landscape. Notably, Achilles holds more cash than debt on its balance sheet, which can be a buffer in its pursuit of clinical advancements. However, the company's P/E Ratio (last twelve months as of Q4 2023) is negative at -0.53, indicating that it is not currently generating profits.
InvestingPro Tips highlight that Achilles Therapeutics has a high shareholder yield and liquid assets that exceed short-term obligations, which could provide some financial stability. Yet, the company is quickly burning through cash and analysts do not anticipate profitability this year. The stock has also taken a significant hit over the last week, with a price total return of -27.77%, and over the last month, with a return of -30.55%. These metrics underscore the importance of the company's upcoming clinical trial results.
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