Cabaletta Bio initiated with a Buy at UBS

UBS initiated coverage of Cabaletta Bio with a Buy rating and $10 price target Cabaletta’s lead candidate CABA-201 has demonstrated proof of concept data in systemic lupus erythematosus/myositis with initial data in systemic sclerosis and generalized myasthenia gravis anticipated in 2H24, though there were some debates on the seemingly slower clinical improvement in myositis when compared to CD19 data from academic setting, and the report of a Gr4 immune effector cell-associated neurotoxicity syndrome event in CABA-201’s early clinical experience with lupus nephritis, the analyst tells investors in a research note. UBS sees the market opportunity for cell therapy in autoimmune indications as broadly underappreciated, where Cabaletta is positioned to be an early entrant with strong clinical execution, and sees meaningful potential upside to shares with current opportunities for CABA-201 in all pursued indications not fully reflected in the current valuation.