Immix Biopharma has tons of upside, says Roth

Clinical-stage biopharm company Immix Biopharma (Immix Biopharma Stock Quote, Charts, News, Analysts, Financials NASDAQ:IMMX) kept its “Buy” rating with Roth Capital Partners on Monday, where analyst Jonathan Aschoff said Immix is on its way towards submitting a commercialization license application for its cancer drug NXC-201.

Immix Biopharma is developing a novel class of tissue-specific therapeutics for oncology and immuno-dysregulated diseases through its proprietary SMARxT Tissue-Specific Platform. The company announced on Monday that subsidiary company Nexcella has dosed 50 relapsed/refractory multiple myeloma patients with CAR-T NXC-201 in its Phase 1b/2a clinical trial. Nexcella is expecting to continue towards 100 patients for its application with the US FDA for its Biologic License Application (BLA) and is aiming to present data on the current 50-patient cohort later this year.

“Few companies are as far advanced with the quantity and quality of patient data that we have at Nexcella in multiple myeloma and AL amyloidosis,” said Gabriel Morris, President of Nexcella, in a press release. “50-patient data represents significant progress on our path to BLA submission to seek FDA approval of NXC-201.”

Commenting on the announcement, Aschoff said Nexcella has been maintaining a robust pace of about five new patients enrolled per month, with completion expected by the 2023 year end. He noted that there was a Hadassah Medical Organization press release earlier this year that described NXC-201 as delivering a “highly favourable” 89 per cent overall response rate (ORR) in the 37 multiple myeloma patients taking the 800 million CAR-T cell dose.

“A key differentiating attribute of NXC-201 is that it may enable point-of-care, outpatient, CAR-T treatment, with decentralized (i.e., local) CAR-T cell production, thereby addressing the limited physical access to CAR-T therapy. By manufacturing and delivering CAR-T therapies to patients in- house, “vein-to-vein” waiting time would be considerably shortened, which is especially critical for rapidly deteriorating patients,” Aschoff wrote.

With a $30 million market cap, IMMX finished 2022 down 36 per cent, while so far in 2023 the stock is down about eight per cent.

With his “Buy” rating, Aschoff has maintained a 12-month target price of $14.00, which at the time of publication represented a projected return of 551 per cent.

“Our 12-month price target of $14 is based on a DCF analysis using a 30 per cent discount rate that is applied to all cash flows and the terminal value, which is based on a 5x multiple of our projected 2031 operating income of $247 million,” Aschoff wrote. “We arrive at this valuation by projecting future U.S. and EU5 royalty revenue from IMX-110 in STS, and future U.S. royalty revenue from NXC-201 in rel/ref MM and rel/ref ALA.”