HCW starts Celularity at buy; PT $15

H.C. Wainwright initiated coverage of Celularity (NASDAQ:CELU) with a “buy” rating and $15 price target. The stock closed at $3.78 on June 21.

Celularity is a clinical-stage biopharmaceutical company focused on developing allogeneic cell therapies as treatments for cancer, infectious diseases and degenerative diseases.

The company has developed the platform, IMPACT, to manufacture multiple types of cell therapies, such as natural killer (NK) cells and chimeric antigen receptor (CAR)-T cells, from placental cells by taking advantage of their superior stemness and safety profile.

“We believe Celularity at a current valuation of about $550-million is undervalued considering the upside potential of the company’s platform and provides for an attractive entry point to long-term investors,” writes analyst Swayampakula Ramakanth, Ph.D.

Celularity currently has three clinical candidates: CYNK-001, an unmodified NK cell therapy for the treatment of acute myeloid leukemia and glioblastoma; CYNK0101, an NK cell genetically modified to enhance its antibody-dependent cellular cytotoxicity for the treatment of advanced unresectable or metastatic HER2+ gastric cancer; and CyCART-19, a CD19-targeting CAR-T cell candidate, for the treatment of relapsed/refractory CD19+ B-cell malignancies.

“We expect these cell therapy products to enter market in 2025,” Dr. Ramakanth said.

IN addition, the company manufactures and commercializes two placental-derived wound health products; Biovance and Interfyl, which Dr. Ramakanth expects to grow to nearly $46-million in 2030 from approximately $20-million in 2022.