Celldex Therapeutics (CLDX) is one of our top picks for 2024. The recently reported 208-patient trial with the first-ever subcutaneous (SC) version of CLDX’s barzo in CSU confirmed that it is the Best-In-Class compound with the fastest onset and most durable efficacy in mast cell blocking, writes John McCamant, editor of The Medical Technology Stock Letter.
All three doses had high statistical significance, (p<0.0001), improvement at 12 weeks. A p<0.05 is statistically significant and the barzoSC data hit the ball out of the park.
As its clinical profile continues to come to fruition, barzo is by far the leader in mast cell inhibition; hence the superior data. More details of the Celldex CSU trial will be at AAAAI in February 2024. But with its own recent and very successful clinical trial data combined with the clinical and regulatory setbacks for three potential competitors in just the past month or so, barzolvolimab’s position as the Best-In-Class compound is becoming even more evident than ever.
After the positive data release (in both CSU and PN), Celldex raised approximately $230 million in a follow-on offering (as its typical of most post-good-data biotechs). It now has about $450 million in cash.
Lastly, CLDX remains to us one of the more attractive takeover candidates in the sector. Recently, Abbvie was in the process of buying Immunogen for $10 billion and Cerevel for $8.7 billion. We believe CLDX with barzo can command a similar valuation.
In sum, with very good data and the financing behind it, we strongly recommend taking advantage of the pullback in CLDX shares to initiate and/or add to positions.
