H.C. Wainwright Downgrades BioAtla Inc. (BCAB) to Neutral

H.C. Wainwright analyst Arthur He downgraded BioAtla Inc. (NASDAQ: BCAB) from Buy to Neutral.

The analyst comments "Awaiting clarity on pipeline development path. On November 7, BioAtla reported its 3Q24 financial results and held a conference call. During the call, management provided updates from its meeting with the FDA regarding the regulatory pathway for both ozuriftamab vedotin (BA3021) and evalstotug (BA3071). BA3021 is a conditionally active biologic (CAB)-based antibody-drug conjugate (ADC) targeting receptor tyrosine kinase like orphan receptor 2 (ROR2), while BA3071 is a CAB-based antibody targeting cytotoxic T-lymphocyte-associated antigen 4 (CTLA-4). The FDA recommended further dose optimization for both BA3021 and BA3071 before initiating potentially registrational studies for 2nd-line plus treatment for head and neck squamous cell carcinoma (HNSCC) and 1st-line treatment for melanoma, respectively. As a result, we do not expect BioAtla to commence a pivotal study with either BA3021 or BA3071 until 2H25. Additionally, it appears that the development of mecbotamab vedotin (BA3011), a CAB-based ADC targeting AXL, for both undifferentiated pleomorphic sarcoma (UPS) and non-small cell lung cancer (NSCLC) indications has stalled. According to management, enrollment in the UPS study has paused, and they are currently evaluating the best regulatory path forward for NSCLC. Finally, BioAtla is in ongoing discussions with potential strategic partners to out-license one of its Phase 2 assets, i.e. BA3011, BA3021, and BA3071, and we believe the company would await these discussions to conclude before chalking a development plan for these assets. With these pipeline decisions pending, we are unable to project the cadence of revenue at this time. Downgrading rating to Neutral with no price target."

For an analyst ratings summary and ratings history on BioAtla Inc. click here. For more ratings news on BioAtla Inc. click here.

Shares of BioAtla Inc. closed at $2.19 yesterday.

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