Adaptimmune Announces $11/ADS Pricing; Stock Now Up Over 850% YTD

Biopharma Adaptimmune Therapeutics (ADAP) has now announced the pricing of an underwritten public offering of 20,500,000 of its American Depositary Shares (“ADSs”) at a price to the public of $11 per ADS.

The stock is currently trading at $11.61, following a jaw-dropping 867% year-to-date rally. On the announcement of the public offering, ADAP sunk 10% in Monday’s pre-market trading, but subsequently ended the day up 5%.

Adaptimmune has also granted the underwriters a 30-day option to purchase up to an additional 3,075,000 ADSs at the public offering price. The gross offering size for this offering is expected to be $225.5 million, excluding any exercise of the underwriters’ option to purchase additional ADSs.

All ADSs in this offering are being sold by Adaptimmune, and the company will use the proceeds to advance the development of immunotherapies into and through clinical trials as well as for other general corporate purposes. The offering is expected to close on or about June 4, 2020, subject to customary closing conditions.

On May 29, ADAP spiked 127% after reporting positive durability and efficacy data in synovial sarcoma at the American Society for Clinical Oncology (ASCO) Annual Meeting.

“We are raising our PT on shares of ADAP to $9 from $3 driven off data presented at ASCO which demonstrated broader platform value for the company’s T-cell receptor (TCR)-T-cell platform technology as well as increased probability of success (POS) for the indication of synovial sarcoma (SS)” cheered Mizuho Securities analyst Mara Goldstein following the event. She now assigns a probability of success for this indication of 90%, up from 70%.

Similarly, JonesTrading analyst Soumit Roy upgraded ADAP to buy with a new $15 price target, writing “Adaptimmune’s ASCO data alleviates our key concern – clear signs of expansion beyond synovial sarcoma into esophageal gastric junction (EGJ) cancer, head & neck cancer (HNC)  and possibly NSCLC.”

Overall, ADAP continues to hold a Moderate Buy analyst consensus, with 2 hold ratings vs 3 buy ratings. The average analyst price target currently stands at $8.50 (27% downside potential). (See ADAP stock analysis on TipRanks).

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