NEW YORK, Oct. 25, 2021 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has initiated coverage of Chimeric Therapeutics Ltd. (ASX:CHM.AX). The in-depth 41-page initiation report includes detailed information on the Chimeric Therapeutics’ business model, services, industry, valuation, management, and risks.
The full research report is available here. Highlights from the report include:
- Promising Pipeline Positioning as ASX Leader in Cell Therapy
Chimeric has a promising pipeline targeting different solid tumors with CLTX CAR T and CDH17 CAR T. The CLTX CAR T therapy concentrates on four indications including Glioblastoma, Melanoma, Colorecta, and Prostate Cancer. The second therapy CDH17 CAR T is exploring treating Neuroendocrine, Colorectal, Pancreatic, and Gastric tumors. With multiple indications being targeted, including some of the highest incidence cancers globally, Chimeric is developing a strong diversified pipeline targeting solid tumors with CAR T therapies, with Chimeric positioning itself as the ASX leader in cell therapy.
- Entering the Attractive Unchartered Territory of Solid Tumors
CAR T therapies have proven to be effective in the treatment of Hematological cancers, but there has been minimal success seen in solid tumors with no approved therapies to date. Chimeric’s lead indication GBM has a high mortality rate and the heterogeneous nature of tumors creates challenges in the treatment of patients. Chimeric’s use of chlorotoxin as a binding agent to a wide variety of GBM cells has exhibited encouraging early-stage data in terms of efficacy and safety in preclinical trials. The CLTX CAR T therapy is currently in Phase I trials with initial safety data expected in Q4 2021.
- GBM – An Unmet Medical Need
Glioblastoma remains an unmet medical need with a 5-year survival rate of around 5% and median overall survival remains at approximately 12 months. GBM is the most common and deadly malignant brain tumor, while continuing to have a poor prognosis. Surgery, radiation therapy and local or systemic chemotherapy are the standard of care. Given the challenges in current treatments, such as crossing the blood-brain barrier and several other resistance mechanisms, GBM historically returns after remission.
- Unassuming Valuation with Unique Risk Reward Scenario
Chimeric is targeting an untapped market with high unmet needs. We believe GBM presents a huge opportunity given the complex nature of tumors. The company’s novel technology has shown potential efficacy and safety in preclinical trials, which although early stage is highly encouraging. Assuming positive data, we model the approval and commercialization in FY2026. Further, we model the company generating peak sales of AUD 3.01 billion. We note the area is highly competitive, there are over 18 CAR T clinical trials being conducted under GBM, with the majority sponsored by academia, we believe the scientific, as well as business skills of Chimeric’s senior team will prove advantageous. We are initiating coverage of Chimeric Therapeutics with our valuation model indicating a fair value of AUD 1.04 per share, contingent on successful execution by the company.
About Chimeric Therapeutics Ltd.
Chimeric Therapeutics is an Australian clinical-stage cell therapy company established in 2020. The company researches, develops and commercializes innovative and promising cell therapies, which they believe can cure cancer and not just delay disease progression. Chimeric Therapeutics is led by a team of cell therapy pioneers and experts committed to bringing the promise of cell therapy to fruition for more patients with cancer. With a number of acquisitions and financing taking place in cell therapy specifically within CAR T cell therapy, the industry is expected to grow rapidly over the next decade.
For more information, visit https://chimerictherapeutics.com.
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms including Factset, Morningstar, and Thomson One.
For more information, visit https://www.diamondequityresearch.com.
Disclosure:
Please refer to the initiation report for full disclosures. Diamond Equity Research LLC is being compensated by Chimeric Therapeutics Ltd. for producing research materials regarding Chimeric Therapeutics Ltd. and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for research engagement. As of 10/25/2021 the issuer had paid us $20,000 for our services, consisting of $20,000 for an initiation report and $15,000 for update notes, which commenced 09/03/2021. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 10/25/2021. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the SEC filings for Chimeric Therapeutics Ltd.
Contact:
Diamond Equity Research
research@diamondequityresearch.com
