BTIG initiated coverage of Precision BioSciences (NASDAQ:DTIL) with a “buy” rating and $22 price target, representing upside of approximately 100% from a closing price of $10.98 on Aug. 8.
“While Precision only recently completed its IPO in March 2019, the company has been developing and refining its gene editing platform, ARCUS, since 2006,” writes analyst Amanda Murphy, adding that ARCUS is protected by a wealth of IP.
She said Precision is one of the leaders in advancing an allogeneic CAR-T product candidate to the clinic. “Given the potential benefits associated with an allogeneic approach, Precision’s near-term focus on well-validated targets, and its investments in building out manufacturing capabilities, we consider Precision’s stock to be meaningfully undervalued based on its CAR-T pipeline alone.”
Precision’s lead allo CAR-T candidate, targeting CD19, is partnered with Servier Therapeutics. However, the remainder of its disclosed allo CAR-T pipeline is wholly owned, she added.
Ms. Murphy said Precision also has built out an early-stage pipeline of in vivo product candidates. The company’s lead in vivo program in Hepatitis B, partnered with Gilead, represents roughly 5% of her price target assuming the company is successful in submitting an IND for the program in 2020. The company has several other preclinical efforts focused in the eye and liver.
