Top Analyst Bullish on Adaptimmune Therapeutics PLC – ADR (ADAP) “Major” Share Drivers Set to Hit This Year

Cowen's Eric Schmidt gives a vote of confidence to ADAP on back of yesterday's fourth quarter financial and pipeline update.


Top analyst Eric Schmidt at Cowen is out betting on Adaptimmune Therapeutics PLC – ADR (NASDAQ:ADAP) following the drug maker’s fourth quarter print and update on its cancer pipeline.

Standout pipeline strides point to NY-ESO TCR achieving proof-of-concept in myxoid round cell liposarcoma (MRCLS) and MAGE-A10 TCR sustaining no shreds of off-target toxicity in sight. The former of which Schmidt praises as “strong” in MRCLS and the latter of which the analyst underscores to be significant.

Noting that “MAGE-101 continues to look clean,” the analyst reiterates an Outperform rating on ADAP stock without listing a price target.

“Initial efficacy data from MAGE-A10 and MAGE-A4 TCRs is expected in H2:18 and will be major catalysts for shares,” Schmidt predicts, confident that this biotech player has “all three wholly owned TCRs on track for 2018 updates.”

The fact that the MAGE-A10 TCR product boasts continued clean safety means that assuming the Data and Safety Monitoring Board’s (DSMB) official nod, the study should march forward to dose level 2, or 1B cells, notes the analyst.

Schmidt highlights, “Adaptimmune is also altering its trials to exclude successfully treated CRS from the definition of a DLT. Based upon its experience with NY-ESO, management believes 1B cells may represent a threshold dose for efficacy to be observed. Therefore, initial efficacy data from the MAGE-A10 NSCLC and triple-tumor trials are expected in H2:18. Importantly, management believes this efficacy data is material. As a result, disclosures are more likely to come in a press release than a medical conference abstract/presentation. Adaptimmune is also developing TCR products specific for MAGE-A4 and AFP.”

Sometime later in the first half of this year, initial safety data is anticipated from MAGE-A4’s Phase 1 basket study, with the analyst eyeing efficacy data in the back half of 2018. Additionally, a Phase 1 study of the AFP TCR in hepatocellular carcinoma (HCC) is due to post initial safety data in the back half of the year.

For the fourth quarter, ADAP posted a net loss of $27 million and ended the quarter with a cash balance of $208 million.

Eric Schmidt has a very good TipRanks score with a 64% success rate and a high ranking of #18 out of 4,786 analysts. Schmidt realizes 45.0% in his yearly returns. When recommending ADAP, Schmidt earns 31.0% in average profits on the stock.

TipRanks highlights strong initial bullish word circulating around ADAP, with all 3 analysts polled in the last 3 months rating a Buy on the stock. With a whopping return potential of nearly 57%, the stock’s consensus target price stands at $17.50.