Cartesian selloff brings ‘attractive buying opportunity,’ says Mizuho

Mizuho reiterates an Outperform rating on Cartesian Therapeutics (RNAC) with a $40 price target following the Q1 report. The quarter was “straightforward” with the company continuing to execute as planned, the analyst tells investors in a research note. The firm believes Cartesian shares have been “unduly punished” with other cell therapy companies due to concerns about potential changes in regulatory standards under new Center for Biologics Evaluation and Research, director Dr. Vinay Prasad. Cartesian has limited near-term FDA exposure, as the company already has a Special Protocol Assessment agreement on the registrational Phase 3 AURORA trial, Mizuho points out. Further, the firm believes the Phase 3 design should meet Dr. Prasad’s more rigorous standards, given it is a placebo-controlled trial. Thus, it sees an “attractive buying opportunity” with Cartesian trading below $10 given Descartes-08’s “potential blockbuster opportunity” in myasthenia gravis.