H.C. Wainwright launched coverage of BioAtla (NASDAQ:BCAB) with a “buy” rating and $25 price target. The stock closed at $5.77 on March 18.
BioAtla is a clinical-stage biopharmaceutical company developing novel therapies for solid tumors based on its conditionally active biologic (CAB) platform.
Analyst Arthur He, Ph.D., writes that CAB utilizes a protein-associated chemical switch mechanism that activates a biologic reversibly in the unique acidic environment of a tumor. The biologic is able to toggle between active and inactive forms as it moves into and out of the tumor.
“The platform is quite versatile that it could be used to generate any antibody-based biologic,” he added. “BioAtla has developed antibody-drug conjugates (ADCs), naked antibodies, and T-cell bispecific antibodies based on this platform.”
Dr. He said that despite the clinical breakthrough of checkpoint inhibitors (CPIs), chimeric antigen receptor T-cell (CAR-T) therapies, and ADCs during the last decade, only about 11% of total cancer patients respond to CPIs, while systemic toxicities limit the therapeutic potential of CAR-T therapies as well as ADCs. As a result, a significant unmet medical need still exists for cancer patients.
“Based on promising data from Phase 1 studies evaluating BioAtla’s mecbotamab vedotin and ozuriftamab vedotin, we believe the CAB platform has the potential to become a disruptive technology in antibody-based cancer therapy for solid tumors,” Dr. He said.
