4. Adicet Bio, Inc. (NASDAQ:ACET)
Number of Hedge Fund Investors: 22
The biotech company Adicet Bio (NASDAQ: ACET) is dedicated to creating readily available cell treatments for autoimmune disorders and cancer. Targeting B-cell non-Hodgkin’s lymphomas, they are presently doing a phase 1 study for their pilot cell treatment, ADI-001. The FDA approved its IND application to study ADI-270 in patients with relapsed or refractory renal cell carcinoma.
It is one of the best one dollar stocks to buy now since the consensus rating for ACET stock, according to analysts, is a “strong buy.” The 12-month average price target is $14.2, reflecting a possible 996.53% increase from the current price of $1.30. Analysts are optimistic about Adicet Bio because of its strong portfolio and forthcoming catalysts, that involve clinical data readouts. Secondly, Insider Monkey disclosed 22 funds that owned Adicet Bio, Inc. (NASDAQ:ACET) hedge funds in Q1 2024. Austin Wiggins Hopper’s AWH Capital is the largest stakeholder in the company.
Gamma delta T-cells are being used by Adicet Bio to construct a platform that exhibits both innate and adaptive immunological properties. These cells lower the likelihood of graft-versus-host illness by specifically targeting cancer and infected cells regardless of MHC presentation. This allows for on-demand usage and qualifies them for allogeneic (non-self) cell therapy.
ADI-001, the leading cell treatment from Adicet, targets CD20 in B cells associated with various leukemias and non-Hodgkin’s lymphomas. Early phase 1 trial data showed minimal adverse effects and promising cell growth and durability. The second part of the year is anticipated to provide further data, including those from patients with mantle cell lymphoma, and a phase 1 study for lupus nephritis is scheduled.
Adicet has $247.6 million in cash and equivalents as of the most recent financial report (Q1 2024), an increase of 6.89% over the same period the previous year. The business will have enough cash for eight or nine quarters, given that its operating expenses in Q1 2024 came to $30.9 million and its net loss in terms of revenue for the period was $28.0 million. It is doubtful that there will be any more dilution in the near future after a $98 million fundraising in January. Adicet and Regeneron have partnered on a GPC3 program for liver cancer, with Adicet receiving up to $80 million in exercise payments in addition to $45 million in upfront and milestone payments.
The gamma delta T-cell strategy used by Adicet has a good chance of having favorable safety profiles and great effectiveness. The preliminary findings are promising, especially in relapsed/refractory NHL, with response rates of over 70%. However, there is a risk associated with Adicet’s early development, as phase 1 data offer only a limited understanding of the drug’s long-term safety and efficacy. There is uncertainty about the timing for clearance, and larger trials may not replicate the early successes.
In the cell treatment space, Adicet Bio appears to be a strong contender based on preliminary evidence. Investors should use caution, nevertheless, considering the early stage of growth. The firm is not overpriced, it’s possible that the impending catalysts will be revolutionary.
