CARGO Therapeutics, Inc.: Initiation of Research Coverage

William Blair initiated research coverage of Cargo Therapeutics, Inc. (CRGX $16.23), a clinical-stage biotech company focused on developing next-generation CAR-T therapies for the treatment of cancer.

Analyst Sami Corwin said, "The company's lead candidate, firi-cel, is a potentially first-in-class CD22 CAR-T and is being evaluated in a potentially pivotal Phase II trial in patients with large B-cell lymphoma, or LBCL, who have progressed after treatment with a CD19 CAR-T. Approximately 50% of CD19 CAR-T-treated patients experience disease progression in the first six months following treatment, and there is no standard of care for patients relapsed/refractory to CD19 CAR-T. We believe near-term initiatives to expand CAR-T access and the potential approval of CD19 CAR-T in the frontline setting will lead to more patients becoming refractory to these therapies and this occurring earlier in their treatment journey, underscoring the growing need for efficacious therapies in a post-CD19 CAR-T setting. Given that firi-cel is the only CAR-T in advanced clinical development in this population, we believe it could have first-mover advantage in the burgeoning CD19 CAR-T refractory population."

Corwin continued, "Firi-cel has demonstrated impressive clinical benefit in Phase I studies, including eliciting a 68% response rate and a 53% complete response rate in LBCL patients who progressed after treatment with a CD19 CAR-T. In addition, the median duration of response was 27.8 months in patients who responded to firi-cel. Based on the safety and efficacy observed in the Phase I trial, we view the ongoing Phase II trial as de-risked. Outside firi-cel, the company will present preclinical data on its CD19/CD20/CD22 tri-cistronic CAR-T therapy, CRG-023, at the 2024 American Society of Hematology meeting and anticipates advancing it into the clinic in 2025."

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Current Ratings Distribution (as of 11/26/24)

Coverage Universe
Outperform (Buy): 72%
Market Perform (Hold): 28%
Underperform (Sell): 1%

Inv. Banking Relationships*
Outperform (Buy): 10%
Market Perform (Hold): 0%
Underperform (Sell): 0%

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