Creative Medical Technology has a huge upside, says Roth

The stock is down considerably over the past two years, but Roth Capital Partners analyst Jonathan Aschoff is staying bullish on biotech name Creative Medical Technology (Creative Medical Technology Stock Quote, Charts, News, Analysts, Financials NASDAQ:CELZ). In a company note on Thursday, Aschoff maintained a “Buy” rating and $7.00 target price on CELZ, projecting a one-year return at the time of publication of 695 per cent.

Phoenix-based Creative Medical, which works in the area of regenerative therapy in the fields of immunotherapy, urology, gynaecology and orthopaedics, announced on Wednesday data from its CELZ-001 trial to treat patients with Type 2 Diabetes. 

CELZ-001 is a supercharged autologous-based immunotherapy that uses a patient’s own immune cells for treating multiple indications. The platform uses secreted factors from an allogenic cell line called AlloStem to alter a patient’s own immune cells and then reinfuse them into the patient.

The company reported no safety concerns related to CELZ-001 at a one-year follow-up using the same infusion procedure as in its CELZ-201 trial, finding an overall efficacy rate of 93 per cent in treated patients demonstrating at least a 50 per cent reduction in insulin requirement.

Creative Medical said it plans to present further findings at an upcoming endocrinology conference.

“The positive one-year data from our Type 2 diabetes study is very encouraging, and we are excited to engage with clinicians in further translation,” said Timothy Warbington, President and CEO, in a press release. 

“Creative Medical Technology Holdings has a unique portfolio with multiple cell-based approaches that can potentially help patients with early-stage Type 1 Diabetes – CELZ-201, Brittle Type 1 Diabetes – CELZ-101, and late-stage Type 2 Diabetes – CELZ-001,” he said.

In the CELZ-001 trial, 30 patients were randomized 1:1 to receive either CELZ-001 plus optimized Type 2 Diabetes medical therapy or just optimized Type 2 Diabetes medical therapy. 

Commenting on the results, Aschoff wrote, “CELZ reported positive one-year follow-up data and significant efficacy using CELZ-001 to treat T2D without any reported serious adverse events and no safety concerns related to CELZ-001 at the one-year follow-up point.”

As to his revenue projections for Creative Medical, Aschoff is forecasting $181K for 2023, $732K for 2024 and $1.8 million for 2025. The forecast then moves upwards from $35.7 million in 2026 to $122.6 million by 2030. 

Creative Medical’s share price was above the $10 mark for a good stretch of 2021 but the stock has since tailed off and has been in sub-$1 territory since last May.