SVB Leerink starts TCR2 Therapeutics at OP; PT $27

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SVB Leerink launched coverage of TCR2 Therapeutics (NASDAQ:TCRR) with an “outperform” rating and $27 price target. The stock closed at $15.64 on March 8.

TCR2 is a clinical-stage cell therapy company developing a genetically engineered T-cell receptor platform aimed at addressing solid and hematologic malignancies.

Analyst Jonathan Chang writes TCR2 has used its TRuC (T-cell Receptor Fusion Construct) platform to generate a pipeline of assets designed to address limitations of existing T-cell approaches.

“The TRuC platform is uniquely differentiated from other cell therapy approaches and is being studied in multiple solid tumor indications, which we view as potentially transformative for the cell therapy field, if successful,” he added.

Lead program, TC-210, targets mesothelin-expressing cells in various solid tumor indications, including non-small cell lung cancer, ovarian cancer, cholangiocarcinoma, and malignant pleural mesothelioma. The company is expected to start a Phase 1/2 study in early 2019.

“While initial clinical data are not expected until the second half of 2019, we have received positive feedback from MEDACorp key opinion leaders based on the preclinical data to date that highlights the potential of TCR2’s approach,” Mr. Chang said.

“We maintain a positive long-term view of the stock based on an experienced management team and potentially transformative platform with broad therapeutic applicability,” he added.

Stephen Kilmer