Maxim starts FibroBiologics at Buy, sees fibroblast therapy as ‘more potent’

Maxim initiated coverage of FibroBiologics with a Buy rating and $12 price target. The company is developing a novel form of cell therapy using fibroblasts to develop treatments across a range of indications including chronic wounds, psoriasis, multiple sclerosis, degenerative disc disease, and immunosenescence, the analyst tells investors in a research note. Fibroblasts share many paracrine effects in common with stem cells and are the only other cell type with the capability to differentiate into and regenerate organ tissue, but unlike stem cells, fibroblasts are extremely abundant, making sourcing and isolation easier and reducing production costs, and the preliminary evaluations suggest their effects may be more potent, the firm added.