Citi reiterates Buy on Cabaletta, says too early to write off CAR-T

Citi analyst Samantha Semenkow says Cabaletta Bio shares have been under pressure, down over 40% quarter-to-date, given concerns surrounding increasing competition across the autoimmune cell therapy landscape, including a recent emerging debate on bispecifcs in autoimmune indications. Last week, two publications detailing the first applications of blinatumomab in one systemic sclerosis patient and six rheumatoid arthritis patients were published, the analyst tells investors in a research note. The firm believes data are encouraging and highlight the potential for bispecifics to drive remission in rheumatoid arthritis and disease improvement in systemic sclerosis. However, Citi does not think the data-to-date suggest bispecifics will negate the potential for CAR-T utilization in patients with severe autoimmune disease. The data are very early, and the rheumatoid arthritis study in particular highlights limitations on remission durability and the need for ongoing maintenance therapy, the firm contends. It reiterates a Buy rating on Cabaletta with a $30 price target.