William Blair initiated research coverage of MaxCyte, Inc. (MXCT $14.34), a market-leading provider of enabling technologies for cell engineering. The company’s ExPERT platform is used to advance the discovery, development, and commercialization of next-generation cell therapies.
Analyst Matt Larew estimated the company would generate revenue of $27.8 million in 2021 and $38.0 million in 2022. He noted that the strategic platform licenses (SPLs) MaxCyte enters with commercial cell therapy developers allow the company to benefit as customers advance therapies through the clinic and provide significant upside in the form of downstream milestones and royalties.
“MaxCyte provides diversified exposure to the large, rapidly growing cell therapy market,” Larew said. “MaxCyte’s ExPERT platform is seen as a critical enabling technology by many leading cell therapy companies. The ExPERT platform has been designed to address growing demand for nonviral delivery and next-generation cell engineering approaches. Given the best-in-class performance of MaxCyte’s ExPERT platform and the regulatory support provided by its FDA Master File, we expect the percentage of cell therapies that leverage its technology to increase over time. In addition, we believe the terms of MaxCyte’s SPLs make investing in the company a one-of-a-kind opportunity in life sciences. MaxCyte’s SPLs allow it to participate in the value creation of its customers’ programs via precommercial milestones and in nearly all cases of commercial sales-based payments. Since MaxCyte’s technology is formally included in regulatory filings, we see little risk of SPL customers moving away from the company after entering the clinic. As of early August 2021, MaxCyte’s total number of SPLs had reached 14.”
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Outperform (Buy): 76%
Market Perform (Hold): 23%
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