H.C. Wainwright analyst Yi Chen reiterated a Buy rating on Anixa Biosciences (ANIX – Research Report) today and set a price target of $12.00.
Yi Chen has given his Buy rating due to a combination of factors including Anixa Biosciences’ operational runway and the progress of its oncology/immunology assets. The company, with a net loss of $3.3M for fiscal 1Q24, still maintains a solid financial position with $23.8M in cash and short-term investments, suggesting a runway of at least two years. This financial stability, alongside the upcoming investor presentation detailing their first-in-class oncology/immunology portfolio, paints a positive picture of the company’s future prospects. Additionally, Yi Chen’s endorsement is reinforced by the treatment of the first patient in the second cohort of the Phase 1 ovarian cancer CAR-T trial, indicating satisfactory safety and tolerability in the preliminary stages of the trial.
Chen’s valuation of Anixa Biosciences at $12 per share is informed by a detailed discounted cash flow analysis that yields an estimated market value of $398M for its breast cancer vaccine and CAR-T therapy for ovarian cancer. The analysis factored in a 15% discount rate and a 1% terminal growth rate, with a 15% probability of approval for both treatments. The report acknowledges that risks such as clinical trial failures, regulatory hurdles, market competition, and potential dilution could impact the valuation. However, the progress in the clinical development of their CAR-T therapy, with its innovative approach to targeting ovarian cancer cells while minimizing adverse effects, supports the optimistic outlook and justifies the Buy rating.
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Anixa Biosciences (ANIX) Company Description:
Anixa Biosciences, Inc. is a cancer-focused biotechnology company, which focuses on harnessing the body’s immune system in the fight against cancer. It operates through the following segments: Cancer Diagnostics, Cancer Therapeutics, and Legacy Patent Licensing Activities. Cancer Diagnostic segment develops CchekTM platform, a series of inexpensive non-invasive blood tests for the early detection of solid tumors, which is based on the body’s immune response to the presence of a malignancy. Cancer Therapeutics segment offers chimeric antigen receptor T-cell (CAR-T) based immuno-therapy drugs which genetically engineer a patient’s own immune cells to fight cancer. The company was founded on November 5, 1982 and is headquartered San Jose, CA.
