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Understanding Mustang Bio’s Risk Factors

Clinical-stage biopharmaceutical company Mustang Bio, Inc. (MBIO) is focused on translating breakthroughs in cell and gene therapies into treatments for hematologic cancers, solid tumors, and rare genetic diseases.

Its recent Q2 numbers outperformed consensus estimates with regards to net profit.

Let's take a look at the company's financial performance, as well as what has changed in its key risk factors that investors should be aware of. (See Mustang Bio stock charts on TipRanks)

Recently, the European Medicines Agency (EMA) granted PRIME designation to Mustang’s lentiviral gene therapy MB-107, for treating XSCID in newly diagnosed infants. This designation is meant to quicken the development and approval of medicines targeting conditions with high unmet medical need.

Additionally, Mustang also entered into an exclusive license agreement with Mayo Clinic for a novel technology to transform the administration of CAR T therapies.

In Q2, Mustang’s R&D expenses remained relatively flat at $11.9 million, compared to $11.1 million a year ago. G&A expenses dropped to $2.5 million, versus $3 million a year ago.

Net loss per share narrowed to $0.16 from $0.32 in the previous year; beating consensus by $0.04.

On August 17, H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating on the stock, with a $7 price target.

Commenting on the PRIME designation for MB-107, Pantginis said, “The PRIME designation provides an encouraging milestone as the company prepares to initiate a pivotal, multicenter Phase 2 clinical trial of MB-107 in newly diagnosed patients with X-SCID in Q3.”

Based on four unanimous Buys, consensus on the Street that Mustang Bio stock is a Strong Buy. The average MBIO price target of $10.33 implies a 242.1% potential upside for the stock.

Risk Factors

According to the new TipRanks Risk Factors tool, Mustang Bio’s main risk category is Tech & Innovation, accounting for 38% of the total 66 risks identified. Since June, the company has changed two key risk factors.

Under the Finance & Corporate risk category, Mustang noted that until it can generate substantial revenue from products, the company has to meet its cash requirements through equity offerings, debt financing, grants, and license development agreements. Tapping additional capital, including lending arrangements, may lead to dilution for the company’s present stockholders, restrict operations, or cause the company to relinquish proprietary rights.

Under the Production category, Mustang acknowledged that if any of its product candidates receive approval, and Mustang or its contract manufacturers fail in their production obligations, then Mustang may face delays in product commercialization, or fail to meet market demand.

Compared to a sector average Tech & innovation risk factor of 25%, Mustang’s is at 38%.

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The post Understanding Mustang Bio’s Risk Factors appeared first on TipRanks Financial Blog.


By: Kailas Salunkhe
Title: Understanding Mustang Bio’s Risk Factors
Sourced From: blog.tipranks.com/understanding-mustang-bios-risk-factors/
Published Date: Mon, 30 Aug 2021 13:26:17 +0000

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