- Mizuho met Cabaletta Bio Inc (NASDAQ:CABA) management team after last week's data release at ASGCT.
- Although, the data readout at ASGCT failed to cheer investors, and shares lost almost 16% during the market trading session.
- Mizuho reiterates a Buy rating on CABA shares but lowers the price target to $10 (down from $20) due to a higher discount rate reflecting the current economic environment and increased financing risk.
- The analyst writes that the safety data to date and the persistence of engineered cells are particularly encouraging. Still, it is waiting to see if the approach can deliver the necessary efficacy at higher doses.
- The analyst notes questions regarding the application of CAR-T technology to treat autoimmune disorders.
- While direct evidence of the engineered cells distributing into tissues was not seen, data on most persisting engineered T cells carrying the memory phenotypes was observed.
- Additionally, immune rejection of the engineered cells was not evident, as seen by the re-dosing of one of the trial's patients.
- The analyst says it is waiting for the three-month follow-up data for the A4 cohort to look for signs of any potential therapeutic effect and cellular kinetics and disease outcomes data for the remaining A5, A5e, and A6 cohorts.
- Price Action: CABA shares are down 1.68% at $1.26 during the market session on the last check Wednesday.
