Edison Issues ADR Update on Celyad (CYAD)

Celyad has noted that the Phase I safety study on its NKR-2 CAR T-cell autologous therapy produced some "reports of clinical benefit". The THINK Phase Ib trial has been approved in Belgium and awaits FDA clearance. This is a major expansion of CAR therapy with five solid tumors plus AML and MM being explored. As a result, we have raised the probability of success to 20% from 18.5%. There is a challenge to the granted 2009 US patent on allogeneic CAR T-cells. While the claim is being re-examined, the patent remains in force; other patents and patent applications provide protection. Edison's interim indicative value has been rebased and increased to $50 per share, formerly $46 per share.

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Our valuation model for Celyad has been rebased to focus on NKR-2 indications. As Celyad is initiating an NKR-2 trial in solid tumors, these have also been added to the valuation but with caution as this could be a challenging set of indications and there is very little current clinical data on the NKR-2 product. The C-Cure value is unchanged at 35% probability and is now regarded as an indicative deal value on partnering. Celyad has also cut its cash burn to no more than $34m per year to conserve cash to mid-2019. These adjustments give an interim indicative value of $50 per share, formerly $46 per share.

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Edison Investment Research          
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Lala Gregorek                      
Edison Investment Research          
+44(0)20-3681-2527
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SOURCE Edison Investment Research