Brookline Capital Markets initiated coverage of Caribou Biosciences (NASDAQ:CRBU) with a “buy” rating and 12-to-18-month price target of $19. The stock closed at $10.71 on Feb. 11.
Caribou is a leading next-generation gene-editing company focused on the development of CRISPR/Cas12-based therapeutics. Caribou uses both CRISPR/Cas 9 and CRISPR/Cas12, a revolutionary gene editing technology that allows for precise, directed changes to genomic DNA, writes analyst Leah Rush Cann.
Ms. Cann said Caribou is applying this technology to potentially treat both hematologic and solid tumor cancers. The company went public in July 2021, and is currently developing ex vivo therapies, but “believes the power of the platform will lead to exploring in vivo therapies as well,” she added.
The company’s pipeline includes CB-010 in B-cell lymphomas, CB-011 in multiple myeloma and CB-012 in acute myeloid leukemia. CB-010 is in a Phase 1 program, while CB-011 and CB-012 are preclinical.
Ms. Cann said that as of Sept. 30, 2021, Caribou had $400.1-million in cash and no debt. “We estimate Caribou has sufficient cash to fund the development of its programs through 2023, and will need an additional estimated $1-billion after 2023 to reach commercialization of the clinical-stage pipeline,” Ms. Cann said.
