Jasper Therapeutics Stock Is up 127% in Three Days. How Much Higher Can It Go?

·2 min read

There’s a new biotech in town flying under the Street’s radar. Jasper Therapeutics (JSPR) only went public in September via the SPAC route, and the stock still has a low profile on Wall Street. One analyst, however, has been taking notes, and he is decidedly positive.

“We view JSPR as an emerging leader in the development of novel targeted conditioning agents for hematopoietic stem cell transplantation (HSCT) with lead candidate JSP191 and proprietary engineered hematopoietic stem cell (eHSC) platform,” said Oppenheimer’s Jay Olson.

The problem with stem cell transplants is that while most blood cancers benefit from the treatment, to get new cells to graft is an almost impossible task requiring the removal of the existing line of stem cells before proceeding any further. Conditioning regimens are not as dangerous as they used to be, but they can still get much better.

And this is where JSP191 enters the frame. The anti-CD117 monoclonal antibody is intended to impede the stem cell factor (SCF) signaling pathway, critical for hematopoietic stem cell survival and proliferation. As a targeted conditioning agent with the “potential to transform the risk/benefit profile of HSCT,” JSP191 provides a “favorable alternative.”

JSP191 is currently in clinical testing for patients with severe combined immunodeficiency (SCID), in addition to patients with myelodysplastic syndromes (MDS) or acute myeloid leukemia (AML). It is early days, but the results so far have been promising with the drug well tolerated in over 100 patients studied so far. Particularly, in the phase 1 trial for patients with myelodysplastic syndrome and acute myeloid leukemia, following conditioning with JSP191, all 6 participants achieved 100% donor cell engraftment. The results, along with preliminary efficacy signals from the SCID trial, provide “clinical proof-of-concept and support the next stage of clinical development.”

There are also several catalysts to look forward to. Amongst others, there’s the IND filing for a phase 1a study in the autoimmune setting to come this quarter and phase 1b topline data from the AML/MDS trial expected in 1H22, plus anticipated “key milestones” regarding the internal development of JSP191 in SCID and autoimmune diseases.

All the above results in Olson initiating coverage with an Outperform (i.e., Buy) rating and $21 price target. Olson might currently be the only analyst following JSPR but his initiation note has caused excitement amongst the investing community; shares skyrocket 127% in the three trading sessions following Olson’s positive assessment. Nevertheless, there’s still room for a 42% uptick from current levels. (To watch Olson’s track record, click here)

Olson might currently be the only analyst following JSPR It will be interesting to see whether other analysts follow in Olson’s footsteps and chime in with JSPR reviews shortly. (See JSPR stock analysis on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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