Alpha Teknova Set to Prosper from Expected Boom in Cell & Gene Therapies: KeyBanc Analyst

KeyBanc Capital Markets has initiated coverage on Alpha Teknova Inc TKNO with a Sector Weight rating.

Alpha Teknova is a pure play on the reagents and consumables needed in a lab for cell therapy production, synthetic biology, and other processes. 

Teknova's emphasis on ready-to-use products, short lead times, and scale attracts customers.

KeyBanc notes that if Cell & Gene Therapies achieve their potential success, Alpha Teknova will be a significant research technology provider for many programs.

The analyst notes five Cell & Gene Therapies approvals in 2022, with an expected 10-14 approvals or accepted filings by the EU and the FDA in 2023. 

Successful Cell & Gene Therapies approvals and successful TKNO revenue results will increase confidence that TKNO can accelerate revenue growth.

The analyst writes that the company's customers include early-stage biotech, and revenue should only show low-single-digit growth in 2023 due to funding constraints. 

The company is raising capital through an at-the-market program, and the analyst estimates that about $10-$20 million of capital is needed.

The analyst also notes that the completion of the company's Hollister, CA, facility and $200 million in revenue is possible, but the utilization rate is uncertain.

Price Action: TKNO shares are up 5.92% at $3.04 on the last check Wednesday.