Adicet Bio’s Innovative Approach and Strong Financial Position Drive Buy Rating

Soumit Roy, an analyst from JonesTrading, maintained the Buy rating on Adicet Bio (ACET – Research Report). The associated price target remains the same with $4.00.

Soumit Roy has given his Buy rating due to a combination of factors surrounding Adicet Bio’s innovative approach in the field of cancer treatment. Adicet Bio is leveraging a unique strategy by utilizing the natural ligand CD27 to target CD70 in solid tumors, which differentiates it from its peers who use the CD70 scFv epitope. This approach is expected to potentially offer better safety outcomes, as evidenced by the ongoing Phase 1 trial of ADI-270, an armored CD70 CAR γδ T cell candidate.
Furthermore, the focus on Adicet’s I&I program highlights the vast opportunities available for cell therapy drugs in this space. While the valuation model does not yet include the immunology and solid tumor programs, the anticipation of initial data from Adicet and updates from peer programs in the coming years underscores the potential for significant advancements. The company’s financial position, with a cash reserve of $150 million against an estimated cash burn of $124 million, also supports its ongoing research and development efforts.