Indication intelligence, analysis and sector perception

RegMed Investors (RMi) Research Note: Caribou Biosciences (CRBU) proposes $125 M offering of 19.,230,769 shares priced at $6.50

July 14, 2023 8:52am

CRBU closed up +$0.38 or +4.90% to $8.14 with an pre-market downdraft of -$1.29 or -15.85% to $6.85

BofA Securities, Leerink Partners, Evercore ISI, and RBC Capital Markets are acting as book-running managers

CRBU’s experimental CAR T-cell therapy helped clear all signs or decrease tumor size in 94% of patients being treated for a type of cancer in the lymph nodes in a small, early-stage trial.

· The responses seen in patients treated with Caribou's CAR T-cell therapy, which uses stem cells from a donor, rival those seen in patients treated with approved CAR T-cell therapy where patients' own stem cells are harvested, the company said.

· The study also showed the therapy helped achieve complete response, meaning no detectable sign of cancer, in 69% of patients, and a complete response for 6 months and more in 44% of 16 patients.

The therapy was well tolerated with adverse events consistent with existing approved CAR T-cell therapies in the study, the drug developer said.

· CRBU is currently enrolling second-line patients with large B cell lymphoma for the second portion of the early-stage study, and the data is expected in 1H/2024.

Pfizer (PFE) earlier this month paid $25 million for a minority stake in CRBU, gaining the right to negotiate first for a license or purchase of another CAR T-cell therapy, CB-011, which is in early-stage testing for patients with a type of blood cancer.

Non-Hodgkin's lymphoma that develops in the lymph nodes, which is part of the body's immune system typically affects patients over the age of 60, but can also be seen in all ages.

The Bottom Line: to me, it was expected – good data, a PFE investment/partnership … prices at $6.50

52-week change: +514.91%

52-week low of $3.96 and a high of $13.19

Shares outstanding: 66.05 M

Float: 50.84 M shares

Short percentage (%) of float: 10.05%

Cas: $229.54 M

Debt: $27.42M

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

Do you have an opinion you would like to share with us? We would like to hear from you.

Please e-mail us at hwm@regmedinvestors.com.

Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

RegMed Investors (RMi) or Regmedinvestors.com content is the intellectual property of Henry McCusker. Any copying, republication or redistribution of RMI’s content, including by framing or similar means, is expressly prohibited without the prior written consent of Scimitar; who also shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. For additional information on other Scimitar media services or reposting please email hwm@regmedinvestors.com.

The information included above as well as individual companies and/or securities mentioned should be construed as guidance in RMi reviews.

The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.