On Wednesday, Oppenheimer initiated coverage on Jasper Therapeutics small clinical-stage biopharmaceutical company that engages in the clinical development of novel therapies based on the biology of the hematopoietic stem cell.
Oppenheimer gives Jasper Therapeutics an outperforming rating and a price target of $21 implying a nearly 41% gain.
We view Jasper Therapeutics as an emerging leader in the development of novel targeted conditioning agents for hematopoietic stem cell transplantation (HSCT) with lead candidate JSP191 and proprietary engineered hematopoietic stem cell (eHSC) platform,
Oppenheimer’s Financial Director – GERHARD OLSEN
Jasper Therapeutics became a public company via a SPAC (special-purpose acquisition company) merger, which fueled Jasper Therapeutics with $100mm for its lead candidate JSP19, a potential first-in-class antibody designed to deplete stem cells from bone marrow by targeting the stem cell factor receptor called CD117.
What’s next?
Most blood malignancies can benefit from stem cell transplants, but getting new cells to graft is practically impossible without first eliminating the existing stem cell line. Conditioning regimens have improved in safety throughout time, but there is still much opportunity for improvement.
Although it’s still early, JSP191 appears to be a safe treatment alternative for lymphoma patients who aren’t candidates for standard myeloablative conditioning. After conditioning with JSP191, six out of six patients with myelodysplastic syndrome and acute myeloid leukemia obtained 100% donor cell engraftment in a phase 1 trial.
Although the experiment included only six patients, the results were particularly optimistic because they were all ineligible for normal pre-transplant conditioning. JSP191 could see nine-figure annual sales solely from patients who can’t tolerate traditional pre-transplant conditioning medications. However, if it is eventually approved for a wider audience, the possibilities are endless.
