Adicet Bio Inc

Adicet Bio, Inc. is a clinical stage biotechnology company. The Company is engaged in advancing a pipeline of off-the-shelf gamma delta T cells, engineered with chimeric antigen receptors (CARs), to facilitate durable activity in patients. Its lead product candidate, ADI-001, a first-in-class allogeneic gamma delta T cell therapy expressing a CAR targeting CD20, is being developed for the potential treatment of autoimmune diseases and relapsed or refractory aggressive B cell non-Hodgkin's lymphoma (NHL).

Recent Business and Financial Updates

• Autoimmune Diseases
  • Initiation of Phase 1 Study for ADI-001 in Lupus Nephritis: Adicet Bio is set to begin a Phase 1 study of ADI-001 for lupus nephritis in the second quarter of 2024. The FDA granted clearance for Adicet's IND application in December 2023. This trial will evaluate the safety and efficacy of ADI-001 in lupus nephritis, with preliminary data anticipated in late 2024 or early 2025, depending on patient enrollment and study site activation.
  • Expansion of ADI-001 into Additional Autoimmune Diseases: Adicet Bio is broadening the clinical applications of ADI-001 to include other autoimmune indications. Preliminary clinical data from these additional indications are expected in the fourth quarter of 2024 or the first half of 2025, subject to regulatory clearances and successful site initiation and patient enrollment.
• Hematologic Malignancies and Solid Tumor Indications
  • Preclinical Data Presentation for ADI-270: In May 2024, Adicet presented promising preclinical data at the ASGCT annual meeting, showcasing the robust anti-tumor activity of ADI-270, an allogeneic "off-the-shelf" gamma delta CAR T cell therapy targeting CD70+ cancers. Based on these results, Adicet plans to submit an IND for ADI-270 in renal cell carcinoma in the second quarter of 2024, with clinical data from a Phase 1 study expected in the first half of 2025.
  • Enrollment in ADI-001 Phase 1 GLEAN Study for Mantle Cell Lymphoma (MCL): Adicet continues to enroll MCL patients in the ongoing Phase 1 trial of ADI-001 for relapsed or refractory non-Hodgkin’s Lymphoma. The company is on track to provide a clinical update on safety, efficacy, and 6-month complete response data in the second half of 2024.
• Financial Results for First Quarter 2024
  • Research and Development (R&D) Expenses: R&D expenses for the three months ended March 31, 2024, were USD 23.9 million, compared to USD 26.8 million for the same period in 2023. The decrease was primarily due to a reduction of USD 3.1 million in expenses related to contract development manufacturing organizations (CDMOs) and other externally conducted research and development.
  • General and Administrative (G&A) Expenses: G&A expenses for the first quarter of 2024 were USD 7.0 million, up from USD 6.6 million in the same period in 2023. This increase of USD 0.4 million was mainly driven by higher personnel expenses, partially offset by reductions in contractor fees and professional fees.
  • Net Loss and Cash Position: The net loss for the three months ended March 31, 2024, was USD 28.0 million, or USD 0.35 per basic and diluted share, including non-cash stock-based compensation expense of USD 5.7 million. This compares to a net loss of USD 30.9 million, or USD 0.72 per basic and diluted share, including non-cash stock-based compensation expense of USD 4.8 million for the same period in 2023. As of March 31, 2024, Adicet Bio held cash and cash equivalents totaling USD 247.6 million, up from USD 231.6 million as of March 31, 2023. The company expects this cash position to fund operating expenses into the second half of 2026.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 40.11, currently taking support from 30 levels, with expectations of a consolidation. Additionally, the stock's current positioning is below both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term resistance levels.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is July 08, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.