Strategic Partnership Boosts Poseida Therapeutics’ Solid Tumor Treatment Capabilities and Underpins Buy Rating

William Blair analyst Sami Corwin has maintained their bullish stance on PSTX stock, giving a Buy rating on April 22.

Sami Corwin’s rating is based on the strategic collaboration between Poseida Therapeutics and Astellas, which is expected to greatly enhance Poseida’s capabilities in developing treatments for solid tumors. The partnership involves a significant financial agreement, with Poseida receiving an upfront payment of $50 million and the potential for additional milestone and royalty payments that could total up to $600 million. This influx of capital is considered non-dilutive, thus not impacting the current shareholders’ value negatively, while also serving to further endorse Poseida’s innovative allogeneic T memory stem-cell platform.

Moreover, Poseida’s venture into the universal CAR-T space through this collaboration is a significant move that could lead to groundbreaking treatments in the realm of solid tumors—a notoriously challenging area of oncology. The combination of Poseida’s proprietary cell therapy platform with Xyphos’s ACCEL platform and convertibleCAR technology holds promise for creating highly adaptable and potent therapies. The company’s stock reacted positively to this news, and Corwin interprets these developments as evidence that Poseida’s current valuation does not fully reflect the potential of its in vivo platform, prompting the Buy rating.

In another report released on April 22, H.C. Wainwright also maintained a Buy rating on the stock with a $20.00 price target.

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Poseida Therapeutics (PSTX) Company Description:

Poseida Therapeutics Inc is a clinical-stage biopharmaceutical company focused on leveraging non-viral gene engineering technologies to create life-saving therapeutics for patients with high unmet medical need. It has built a pipeline of autologous and allogeneic chimeric antigen receptor T cell, or CAR-T, product candidates, initially focused on the treatment of hematological malignancies and solid tumors.