Mustang Bio, Inc.

Mustang Bio, Inc. (NASDAQ: MBIO) is a clinical-stage biopharmaceutical company focusing on turning medical advances in cell and gene therapies into potential cures for hematologic cancers, solid tumours, and rare genetic diseases. Gene therapy programmes for rare genetic disorders, chimeric antigen receptor (CAR) engineered T cell (CAR T) therapies for hematologic malignancies, and CAR T therapies for solid tumours are part of the company's pipeline.

Key Highlights

• MBIO is yet to report revenue from its operations. In FY21 (ended December 31, 2021) , the company’s loss from operations increased to USD 66.72 million from USD 56.81 million in FY20.
• MBIO net loss expanded to USD 66.37 million in FY21 vs. USD 60.02 million in FY20.
• As of December 31, 2021, the company had cash and cash equivalents of USD 109.62 million and no outstanding debt.
• Its ROE was -13.2% in Q3FY21, whereas the industry median stood at -7.6%.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 0.72 to USD 4.06.

Conclusion: Considering the company’s pre-revenue status, decline in fundamentals, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 0.93, down 9.71%, as of March 23, 2022.

Technical Price Chart (March 23, 2022). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

*Closing price as of March 23, 2022.

Investors 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.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.

Disclaimer

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