Jonathan Chang, an analyst from Leerink Partners, maintained the Hold rating on Adaptimmune Therapeutics. The associated price target was lowered to $0.11.
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Jonathan Chang has given his Hold rating due to a combination of factors surrounding Adaptimmune Therapeutics’ recent strategic decisions. The company has entered into an agreement to sell several of its key assets, including TECELRA, to US WorldMeds for a total of $85 million, which includes upfront cash and milestone payments. This move is seen as a setback because it leaves Adaptimmune with only preclinical assets that are still in the early stages of development.
Additionally, the company plans to significantly reduce its workforce and has experienced the departure of several top executives. These changes contribute to uncertainty about the company’s future direction and the development of its remaining pipeline. As a result, Jonathan Chang’s updated model values the company based solely on its year-end cash per share, reflecting limited visibility on future milestones and developments. Therefore, the Hold rating is maintained due to the early-stage nature of the remaining programs and the lack of clear next steps.
According to TipRanks, Chang is an analyst with an average return of -10.0% and a 32.63% success rate. Chang covers the Healthcare sector, focusing on stocks such as Kura Oncology, Zai Lab, and Replimune Group.