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Alaunos (TCRT) to Wind Down Sole Clinical Study, Stock Dips 65%
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Shares of Alaunos Therapeutics (TCRT - Free Report) plummeted 64.7% on Aug 15, after management announced its decision to discontinue the development of its sole clinical-stage asset, which was being developed across multiple solid tumor indications in the TCR-T phase I/II Library study.
Per management, the above decision was made after a review of the funding needs of the TCR-T phase I/II Library study and the current financial markets. Concurrently, Alaunos will reprioritize focus on its hunTR (human neoantigen T-cell Receptor) discovery platform and also explore broad strategic alternatives. Management will also implement a cost-saving plan whereby it would reduce its workforce by approximately 60%.
Per management, the above decisions will help the company curb cash burn and enable it to extend its existing cash runway into fourth-quarter 2023. As of June 2023-end, Alaunos has a cash balance of $18.3 million.
Alongside the above decisions, the company also reported interim clinical data from the TCR-T phase I/II Library study. This data showed that Alaunos’ TCR-T therapy was well-tolerated in all six evaluable study participants, who achieved an 83% disease control rate.
However, the above results likely did not live up to management’s expectations, who still decided to axe the study. As a result of this decision, the company now has no pipeline candidates undergoing clinical development. Also, the limited cash balance and lack of funding put a concern on the company’s future as an ongoing concern. This was likely the reason for the company’s stock price downfall.
Year to date, Alaunos’ shares have lost 78.6% compared with the industry’s 2.5% fall.
Image Source: Zacks Investment Research
The above announcements were made alongside Alaunos’ second-quarter 2023 results. During the quarter, the company reported a loss of 4 cents per share, which was in line with the Zacks Consensus Estimate. With no marketed drugs in its portfolio, TCRT did not record any revenues during the quarter.
This is the second time in the last two years that Alaunos has decided to reprioritize pipeline development. In 2021, Alaunos (then known as Ziopharm Oncology) implemented a restructuring plan to focus on the TCR-T phase I/II Library study following the decision to wind down an IL-12 program. To advance this plan, management reduced its workforce by half. After management opened the TCR-T phase I/II Library study for enrolment in January 2022, the company rebranded itself from Ziopharm Oncology to Alaunos Therapeutics.
In the past 30 days, estimates for Eton Pharmaceuticals’ 2023 loss per share have narrowed from 31 cents to 10 cents. During the same period, the earnings per share estimates for 2024 have risen from 9 cents to 26 cents. Year to date, shares of ETON have surged 68.1%.
Earnings of Eton Pharmaceuticals beat estimates in each of the last four quarters, witnessing an earnings surprise of 162.14%, on average. In the last reported quarter, Eton’s earnings beat estimates by 300.00%.
In the past 30 days, estimates for Pieris Pharmaceuticals’ 2023 loss per share have narrowed from 68 cents to 35 cents. During the same period, the loss estimates per share for 2024 have improved from 67 cents to 41 cents. Year to date, shares of PIRS have lost 76.9%.
Earnings of Pieris Pharmaceuticals beat estimates in three of the last four quarters while missing the mark on one occasion, witnessing an earnings surprise of 34.20% on average. In the last reported quarter, Pieris’ earnings beat estimates by 131.25%.
In the past 30 days, estimates for Spero Therapeutics’ 2023 loss per share have narrowed from $1.05 to 90 cents. During the same period, the loss estimates per share for 2024 have improved from 84 cents to 83 cents. In the year so far, shares of SPRO have lost 22.3%.
Earnings of Spero Therapeutics beat estimates in each of the last four quarters, witnessing an earnings surprise of 72.43%. In the last reported quarter, Spero’s earnings beat estimates by 20.69%.
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Alaunos (TCRT) to Wind Down Sole Clinical Study, Stock Dips 65%
Shares of Alaunos Therapeutics (TCRT - Free Report) plummeted 64.7% on Aug 15, after management announced its decision to discontinue the development of its sole clinical-stage asset, which was being developed across multiple solid tumor indications in the TCR-T phase I/II Library study.
Per management, the above decision was made after a review of the funding needs of the TCR-T phase I/II Library study and the current financial markets. Concurrently, Alaunos will reprioritize focus on its hunTR (human neoantigen T-cell Receptor) discovery platform and also explore broad strategic alternatives. Management will also implement a cost-saving plan whereby it would reduce its workforce by approximately 60%.
Per management, the above decisions will help the company curb cash burn and enable it to extend its existing cash runway into fourth-quarter 2023. As of June 2023-end, Alaunos has a cash balance of $18.3 million.
Alongside the above decisions, the company also reported interim clinical data from the TCR-T phase I/II Library study. This data showed that Alaunos’ TCR-T therapy was well-tolerated in all six evaluable study participants, who achieved an 83% disease control rate.
However, the above results likely did not live up to management’s expectations, who still decided to axe the study. As a result of this decision, the company now has no pipeline candidates undergoing clinical development. Also, the limited cash balance and lack of funding put a concern on the company’s future as an ongoing concern. This was likely the reason for the company’s stock price downfall.
Year to date, Alaunos’ shares have lost 78.6% compared with the industry’s 2.5% fall.
Image Source: Zacks Investment Research
The above announcements were made alongside Alaunos’ second-quarter 2023 results. During the quarter, the company reported a loss of 4 cents per share, which was in line with the Zacks Consensus Estimate. With no marketed drugs in its portfolio, TCRT did not record any revenues during the quarter.
This is the second time in the last two years that Alaunos has decided to reprioritize pipeline development. In 2021, Alaunos (then known as Ziopharm Oncology) implemented a restructuring plan to focus on the TCR-T phase I/II Library study following the decision to wind down an IL-12 program. To advance this plan, management reduced its workforce by half. After management opened the TCR-T phase I/II Library study for enrolment in January 2022, the company rebranded itself from Ziopharm Oncology to Alaunos Therapeutics.
Alaunos Therapeutics, Inc. Price
Alaunos Therapeutics, Inc. price | Alaunos Therapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
Alaunos currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall the overall healthcare sector include Eton Pharmaceuticals (ETON - Free Report) , Pieris Pharmaceuticals (PIRS - Free Report) and Spero Therapeutics (SPRO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, estimates for Eton Pharmaceuticals’ 2023 loss per share have narrowed from 31 cents to 10 cents. During the same period, the earnings per share estimates for 2024 have risen from 9 cents to 26 cents. Year to date, shares of ETON have surged 68.1%.
Earnings of Eton Pharmaceuticals beat estimates in each of the last four quarters, witnessing an earnings surprise of 162.14%, on average. In the last reported quarter, Eton’s earnings beat estimates by 300.00%.
In the past 30 days, estimates for Pieris Pharmaceuticals’ 2023 loss per share have narrowed from 68 cents to 35 cents. During the same period, the loss estimates per share for 2024 have improved from 67 cents to 41 cents. Year to date, shares of PIRS have lost 76.9%.
Earnings of Pieris Pharmaceuticals beat estimates in three of the last four quarters while missing the mark on one occasion, witnessing an earnings surprise of 34.20% on average. In the last reported quarter, Pieris’ earnings beat estimates by 131.25%.
In the past 30 days, estimates for Spero Therapeutics’ 2023 loss per share have narrowed from $1.05 to 90 cents. During the same period, the loss estimates per share for 2024 have improved from 84 cents to 83 cents. In the year so far, shares of SPRO have lost 22.3%.
Earnings of Spero Therapeutics beat estimates in each of the last four quarters, witnessing an earnings surprise of 72.43%. In the last reported quarter, Spero’s earnings beat estimates by 20.69%.