Century Therapeutics Announces Internal Portfolio Prioritization, Analyst Views It As Incrementally Positive

Century Therapeutics IPSC revealed an internal portfolio prioritization and capital allocation strategy that is expected to extend the cash runway into 2026.
The company will deprioritize investment in CNTY-103 for glioblastoma and a discovery program in hematologic malignancies.
The company will focus on CNTY-101 and prioritize key programs, including one follow-on product candidate for lymphoma, CNTY-102, and CNTY-107, a product candidate for Nectin-4+ tumors.
Century Therapeutics will reduce its headcount by approximately 25%.
The company continues its strategic research collaboration with Bristol-Myers Squibb Company BMY for CNTY-104 in acute myeloid leukemia and CNTY-106 in multiple myeloma. The restructuring does not impact these programs.
Analyst's Take: William Blair says pipeline reprioritization is incrementally positive.
The analyst writes that CNTY-101 is largely de-risked based on initial clinical data generated by other CD19 CAR-NK cell therapies. The company is unlikely to share initial clinical data from CNTY-101 until 2H of 2023.
Furthermore, the analyst adds that the CD19 space is hyper-competitive, with three companies having already produced compelling initial clinical data. Therefore, Century Therapeutics' current valuation adequately reflects the stage of development for its product candidates.
Price Action: IPSC shares closed 2.62% lower at $4.84 on Thursday.

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