MaxCyte

Broadened scope for current MCY-M11 Phase I study

Lighthouse | 18 August 2020

Share this note

  • MaxCyte’s existing MCY-M11 Phase I dose-escalation trial will be expanded into a new parallel cohort of patients, to include preconditioning regimens, with two new clinical sites added. A total of 27 patients will be enrolled across the existing and new parallel cohorts.
  • MCY-M11 is an anti-mesothelin CAR-PBMC cell therapy candidate and the lead programme in MaxCyte’s proprietary CARMA platform. It is being studied in a Phase I dose-escalation using intra-peritoneal delivery to treat patients with relapsed/refractory ovarian cancer and malignant peritoneal mesothelioma. Promising initial results from the first three dose cohorts were presented at this year’s ASCO (virtual) meeting, confirming no dose-limiting toxicities or treatment related serious adverse events and rapid one day manufacturing. A fourth dose cohort began in March 2020.
  • Current study entry criteria exclude patients who have had any preconditioning chemotherapy, with the new cohort specifically including patients who have the typical cyclophosphamide preconditioning regimen prior to MCY-M11 infusion. Although part of the original study, this cohort will also be progressed and evaluated separately from the no-preconditioning patient group.
  • The new cohort will be recruited at two new clinical sites, Massachusetts General Hospital/Harvard Medical School and Hackensack University Medical Center, which join the existing sites at the National Cancer Institute at the National Institutes of Health and Washington University in St. Louis. The distinction of these clinical sites provides useful validation of the quality the MCY-M11 programme.

Trinity Delta view: The broadening of the existing MCY-M11 Phase I dose escalation to patients who have been preconditioned and for multiple treatment cycles augers well for the quality of, and regulatory support for, the data being generated currently. This study expansion has been made possible by the clean safety profile demonstrated by MCY-M11 to date and has the potential to further enhance the efficacy of MaxCyte’s lead CARMA programme. We note that the next MCY-M11 data point, preliminary clinical data from the no-preconditioning cohorts, is expected in H220.

 

Clinical progress of MCY-M11 and the operational progress of CARMA Cell Therapies should bolster MaxCyte’s plans for this wholly-owned subsidiary to be self-funded by end-2020.

 

We detailed the strength of the MaxCyte investment case in our May 2020 Outlook, and currently value the company at £260m or 340p/share. The core business is valued at £158m or 206p/share (£83m or 108p/share for recurrent revenues; £49m or 64p/share for potential milestones), with CARMA Cell Therapies at £103m (134p/share). MaxCyte has continued to make steady progress in executing its strategic plan, despite COVID-19 related headwinds, and we expect to revisit our valuation assumptions following release of H120 results in mid-September.

Lighthouse

18 August 2020

Price335.0p
Market Cap£258.5m
Primary exchangeAIM London
SectorHealthcare
Company Code
 
MXCT
MXCL
Corporate clientYes

Company description

MaxCyte uses its patented flow electroporation platform to transfect a wide array of cells. Revenues arise from sale and lease of equipment, disposables and licence fees; with an impressive client list. Additionally, a novel mRNA mediated CAR technology, known as CARMA, is being explored in various cancers, including solid tumours.

Analysts

Lala Gregorek
lgregorek@trinitydelta.org
+44 (0) 20 3637 5043

Franc Gregori
fgregori@trinitydelta.org
+44 (0) 20 3637 5041

Disclaimer

Trinity Delta Research Limited (“TDRL”; firm reference number: 725161), which trades as Trinity Delta, is an appointed representative of Equity Development Limited (“ED”). The contents of this report, which has been prepared by and is the sole responsibility of TDRL, have been reviewed, but not independently verified, by ED which is authorised and regulated by the FCA, and whose reference number is 185325.

ED is acting for TDRL and not for any other person and will not be responsible for providing the protections provided to clients of TDRL nor for advising any other person in connection with the contents of this report and, except to the extent required by applicable law, including the rules of the FCA, owes no duty of care to any other such person. No reliance may be placed on ED for advice or recommendations with respect to the contents of this report and, to the extent it may do so under applicable law, ED makes no representation or warranty to the persons reading this report with regards to the information contained in it.

In the preparation of this report TDRL has used publicly available sources and taken reasonable efforts to ensure that the facts stated herein are clear, fair and not misleading, but make no guarantee or warranty as to the accuracy or completeness of the information or opinions contained herein, nor to provide updates should fresh information become available or opinions change.

Any person who is not a relevant person under section of Section 21(2) of the Financial Services & Markets Act 2000 of the United Kingdom should not act or rely on this document or any of its contents. Research on its client companies produced by TDRL is normally commissioned and paid for by those companies themselves (‘issuer financed research’) and as such is not deemed to be independent, as defined by the FCA, but is ‘objective’ in that the authors are stating their own opinions. The report should be considered a marketing communication for purposes of the FCA rules. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. TDRL does not hold any positions in any of the companies mentioned in the report, although directors, employees or consultants of TDRL may hold positions in the companies mentioned. TDRL does impose restrictions on personal dealings. TDRL might also provide services to companies mentioned or solicit business from them.

This report is being provided to relevant persons to provide background information about the subject matter of the note. This document does not constitute, nor form part of, and should not be construed as, any offer for sale or purchase of (or solicitation of, or invitation to make any offer to buy or sell) any Securities (which may rise and fall in value). Nor shall it, or any part of it, form the basis of, or be relied on in connection with, any contract or commitment whatsoever. The information that we provide is not intended to be, and should not in any manner whatsoever be, construed as personalised advice. Self-certification by investors can be completed free of charge at www.fisma.org. TDRL, its affiliates, officers, directors and employees, and ED will not be liable for any loss or damage arising from any use of this document, to the maximum extent that the law permits.

Copyright 2020 Trinity Delta Research Limited. All rights reserved.