Caribou Biosciences (CRBU) Soars on $25M Investment by Pfizer
Caribou Biosciences, Inc. CRBU, a leading CRISPR genome-editing biopharmaceutical company, has received a significant boost in its efforts to advance innovative clinical programs with the recent equity investment from pharma giant Pfizer Inc PFE. Shares of Caribou surged 45.6% on the news.
The investment of $25 million marks a strategic partnership between the two companies and underscores the potential of Caribou's clinical programs.
Pfizer has purchased 4,690,431 common shares of Caribou for $5.33 per share, resulting in a $25 million equity investment. The transaction, executed on Jun 30, 2023, is part of a Securities Purchase Agreement between the two companies on Jun 29, 2023. Alongside the investment, Pfizer's Sriram Krishnaswami has joined Caribou's Scientific Advisory Board, further solidifying the partnership.
Caribou is focused on advancing its allogeneic CAR-T cell therapy pipeline, and the infusion of funds from Pfizer's investment will greatly facilitate these efforts. The company will use the funds to advance CB-011, an immune-cloaked allogeneic CAR-T cell therapy currently under evaluation in the phase 1 study, CaMMouflage, for patients with relapsed or refractory multiple myeloma (r/r MM).
This investment enables Caribou to maintain full ownership and control over its pipeline of allogeneic CAR-T and CAR-NK cell therapies, positioning the company to capitalize on future revenue opportunities and maintain its position as a frontrunner in the field of genome-editing biopharmaceuticals.
Caribou’s shares have lost 5.4% in the year so far compared with the industry's decline of 11.1%.
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Dr. Krishnaswami expressed enthusiasm for Caribou's chRDNA genome-editing technology and the potential of allogeneic cell therapies as a new approach to cancer treatment. Pfizer's history of supporting early-stage, innovative science in the biotech ecosystem highlights the company's commitment to driving advancements in the field. Through this partnership, Pfizer aims to contribute to the progress of Caribou's three programs - ANTLER phase I study for CB-010, the clinical program for CB-011 and submission of an investigational new drug application for CB-012.
CB-010 is the lead product candidate from Caribou’s allogeneic CAR-T cell therapy platform and is being evaluated in patients with relapsed or refractory B cell non-Hodgkin lymphoma (r/r B-NHL). The company is enrolling second-line patients with large B cell lymphoma (LBCL) comprising four different subtypes of aggressive r/r B-NHL (DLBCL NOS, PMBCL, HGBL and tFL) in the ongoing phase I study, ANTLER. CB-010 has been granted Regenerative Medicine Advanced Therapy (RMAT), Fast Track and Orphan Drug Designations by the FDA.
This partnership not only provides Caribou with the necessary financial resources but also validates the potential of its genome-editing technologies and allogeneic cell therapies.
Zacks Rank and Stocks to Consider
Caribou currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the healthcare sector are Ligand Pharmaceuticals LGND and Alkermes ALKS. Both currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, earnings estimates for LGND have increased by 46 cents to $5.25. LGND topped earnings estimates in two of the last four quarters and missed in the remaining two, the average surprise being 21.50%.
Over the past 60 days, earnings estimates for ALKS have jumped 80 cents to 79 cents for 2023. ALKS surpassed estimates in three of the trailing four quarters and matched the same in the remaining one, the average surprise being 90.83%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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