Lisata Stock Rallies More Than 30% YTD: Here's Why

Lisata Therapeutics, Inc.'s LSTA lead pipeline candidate is certepetide (formerly known as LSTA1), which is being developed for treating a range of solid tumors.

Earlier this month, the company announced upbeat data from a preclinical study evaluating certepetide for treating intrahepatic cholangiocarcinoma, an aggressive form of cancer, with a poor prognosis.

Data from the study showed that treatment with certepetide combined with standard-of-care (SoC) chemotherapy and immunotherapy improved survival in mice with intrahepatic cholangiocarcinoma.

Certepetide is an investigational drug candidate that allows co-administered or tethered anti-cancer drugs to better penetrate solid tumors by activating a novel uptake pathway. The candidate has exhibited the potential to improve the tumor environment, thereby making tumors more responsive to immunotherapy.

Notably, the phase IIa BOLSTER study is currently investigating certepetide in combination with standard-of-care chemotherapy as a first-line treatment for cholangiocarcinoma.

The positive preclinical data underlines the potential of certepetide in treating human patients with intrahepatic cholangiocarcinoma.

As a result, LSTA is now looking to add another arm to the BOLSTER study, which will evaluate certepetide in combination with SoC chemoimmunotherapy for treating intrahepatic cholangiocarcinoma.

Shares of LSTA have rallied 33.7% year to date (YTD) against the industry's decline of 2.7%.

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Certepetide is currently being evaluated as a combination therapy with various anti-cancer regimens in several early-to-mid-stage studies for treating multiple cancer indications, including metastatic pancreatic ductal adenocarcinoma.

The FDA granted an Orphan Drug designation to certepetide for treating osteosarcoma, a rare type of bone cancer, in April. The FDA also granted a Rare Pediatric Disease Designation to certepetide for treating osteosarcoma in March.

The FDA has previously granted Orphan Drug designation to certepetide for the treatment of pancreatic cancer and glioblastoma multiforme (GBM). The regulatory body has also granted a Fast Track designation to certepetide for pancreatic cancer.

Certepetide is also being studied for other forms of cancers, including pancreatic, esophageal, head and neck, appendiceal and colon cancers, as well as GBM.

Several clinical data readouts from various studies on certepetide are expected during the upcoming months, which, if successful, can significantly boost the company's growth prospect.

Progress with the ongoing studies and successful development of certepetide should continue the upward momentum for Lisata for the remainder of 2024.

Zacks Rank & Stocks to Consider

Lisata currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are ANI Pharmaceuticals, Inc. ANIP, Adaptive Biotechnologies Corporation ADPT and RAPT Therapeutics, Inc. RAPT, each carrying a Zacks Rank #2 (Buy) at present.

In the past 60 days, estimates for ANI Pharmaceuticals 2024 earnings per share have improved from $4.41 to $4.44. Earnings per share estimates for 2025 have improved from $4.85 to $5.42. Shares of ANIP have jumped 14.7% YTD.

ANIP's earnings beat estimates in each of the trailing four quarters, the average surprise being 53.90%.

In the past 60 days, estimates for Adaptive Biotechnologies' 2024 loss per share have narrowed from $1.30 to $1.29, while loss per share estimates for 2025 have narrowed from $1.08 to $1.02. Shares of ADPT have lost 17.7% YTD.

ADPT's earnings beat estimates in two of the trailing four quarters, meeting the same once and missing on the remaining occasion, the average surprise being 0.65%.

In the past 60 days, estimates for RAPT Therapeutics' 2024 loss per share have narrowed from $2.94 to $2.93. Loss per share estimates for 2025 have narrowed from $2.06 to $2.05. Shares of RAPT have plunged 85.7% YTD.

RAPT's earnings beat estimates in two of the trailing four quarters while missing the same on the remaining two occasions, the average surprise being 3.19%.

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