bluebird bio (BLUE) PT Raised to $87 at Maxim Group
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Maxim Group analyst Jason McCarthy reiterated a Buy rating and lifted his price target on bluebird bio (NASDAQ: BLUE) to $87.00 (from $57.00) following early positive data in Multiple Myeloma.
- bluebird announced (early) positive data in Multiple Myeloma. The phase 1 study of bb2121 CAR-T, targeting BCMA (B Cell Maturation Antigen) in relapsed/refractory multiple myeloma (r/r MM) treated 11 patients with escalating doses of bb2121. In 9 evaluable patients there was an overall response rate (ORR) of 78%, though in the 6 patients treated in the two higher dose cohorts, the ORR was 100%, including two stringent complete remissions (sCR) out to 4 months and 6 months (and still going). No grade 3 or higher cytokine release syndrome (CRS) or neurotoxcity.
- A Twist in the CAR-T story: A key takeaway in addition to positive data is the toxicity profile. bb2121 is inducing clinical responses, including complete responses essentially in the absence of CRS and neuro-tox (transient grade 1-2 only, no intervention) Other BCMA CARs, as well as the CD19 CARs all have demonstrated grade 3 or higher CRS and/or neuro-tox. As more bb2121 data emerges, we will see if this trend continues.
- Modeling Changes. Given the positive bb2121 data so far in r/r MM and the activity in MM space targeting BCMA, including partner Celgene's acquisition of EngMab (anti-BCMA/CD3 Bispecific antibodiy), our model is now factoring in a bb2121 launch in 2021. We assume that bluebird and Celgene will split profits in the U.S. market. This change increases our 12-month price target to $87, from $57.
- Conclusion. In our view multiple myeloma is the next stop for the CAR-T space and bluebird has now emerged as a CAR-T player. However, bluebird is not alone, as Novartis, Kite and Juno are targeting BCMA as well. We will be watching for data from other BCMA programs at ASH this weekend.
Shares of bluebird bio closed at $60.35 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
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