Analyst Sees Positive Outlook For Cabaletta Bio: Sees Promise In CAR-T Therapy Approach

Guggenheim Securities initiated coverage of Cabaletta Bio Inc CABA with a Buy rating and a price target of $34.

The analyst writes that the investment thesis on CABA centers around its positive view of its CD19 CAR-T cell therapy CABA-201, currently in development for lupus and myositis. 

Guggenheim writes that, while always a leading player in cell therapy, Cabaletian has recently pivoted from its traditional approach to leveraging chimeric antigen receptor T antibodies (CAR-T) therapy, now a well-established approach in oncology and inflammation and immunology.

The new treatment approach, leveraging chimeric antigen receptor T antibodies (CAR-T) therapy, has been furthered by a Phase 1 and Phase 2 study of Cabaletian which has now cleared two IND's in myositis, and systemic lupus erythematosus (SLE), in under seven months. The next 18 months will see the start of further studies into myositis and SLE, providing important information about the effectiveness of using CAR-T antibodies in other diseases.

The studies show that Cabaletian has successfully pivoted to treating a new disease using a well-established approach. The results of the AD study and the lupus study will be of interest to both the medical community and investors in the field of cell therapy as the company continues to push forward with its innovative treatments for patients suffering from autoimmune diseases.

Price Action: CABA shares are up 11.90% at $13.99 on the last check Tuesday.