Re: Laidlaw Report out this Morning
Action. We are reiterating our Buy rating and our target price of $7.50 to reflect our bullish view on the two clinical products advancing and the potential upside from CAR-T development in China. Our valuation is based on probability adjusted DCF, peer comparable, and sum-of-the-parts analyses.
I would love to see the DCF sheet. Is the assumption 1% penetration to the 150 Billion cancer market? Is the TCR trials probability of success less than 10%? We have seen the NCI has had success to the point the cancer is just gone. If this happens in 50% of people, how many people would say “no I am not taking the chance”.
If the TCR trials are successful (even discounted) 1.2B for a MC is incredibly low.