H.C. Wainwright initiated coverage of Xenetic Biosciences (NASDAQ:XBIO) with a “buy” rating and price target of $2. The stock closed at 86 cents on May 1.
The main focus of the company is development of XCART, a CAR-T cell platform characterized by an autocrine-based antigen selection step for the screening and targeting B-cell receptor, a key player and unique patient-specific antigen expressed by malignant B-cell lymphomas.
“The company has delivered solid proof-of-concept experiments, in vitro and in vivo, supporting the validity of this approach,” writes analyst Joseph Pantginis. “While still preclinical, this technology shows the potential to leverage the demonstrated power of CAR-T therapies in B-cell malignancies, while enhancing their safety and efficacy.”
Mr. Pantginis cited the technology’s selectivity in targeting only malignant cells while sparing normal tissues, and its personalized mechanism of action directed against each patient-specific lymphoma B-cell receptor.
As a first path to market, he said the company has chosen to address relapse/refractory follicular lymphoma and, specifically, those patients progressing quickly, in less than two years, after receiving first line of therapy, or approximately 20% of all cases, and currently lacking valid options for treatment.
Xenetic now is seeking an academic partnership to support the XCART process, including manufacturing, and is planning to begin the first clinical investigation of XCART with an IND submission targeted for 2021, he added.
In addition, the company is discussing with the FDA the appropriate IND enabling steps, “which we expect to be key in determining the safety and feasibility of the approach,” Mr. Pantginis said.
