Curing cancer is not easy. It’s a long, expensive road for even the most bold scientists and investors. In today’s tight funding environment, many biotechs will never get a chance to bring their science to fruition. But Caribou Biosciences ($CRBU) stands out from the pack. A recent investment by a renown pharmaceutical giant may be a milestone for this research stage biotech.
By Sudheer Narasimha, Equity Analyst
Caribou Biosciences might be one of the most revolutionary companies in the field of cancer research. Caribou Biosciences is a leading biotechnology company at the forefront of cancer research and therapy development. Leveraging the power of CRISPR-Cas9 gene editing technology, Caribou aims to revolutionize the treatment of cancer by developing innovative and precise therapeutic solutions. Their primary focus lies in utilizing CRISPR-Cas9 to target and modify cancer-related genes, thereby disabling or enhancing their functions to combat the disease. Caribou’s dedicated team of scientists and researchers work diligently to design and optimize CRISPR-based therapies, especially immunotherapies to boost the body’s immune response against cancer. By harnessing the potential of CRISPR technology, Caribou Biosciences aims to bring about a new era in cancer treatment, providing hope for patients worldwide. Lately, Caribou’s science looks more and more promising.
More specifically, Caribou is on a path to revolutionize treatment of various blood cancers. Currently, the treatment for these blood cancers is a slow and expensive process. They require the treatment to be custom made and tailored to each individual patient, making it tedious and expensive. Caribou is focused on creating an off-the-shelf treatment option. The goal is to reduce the time and cost associated with manufacturing personalized CAR-T therapies for each patient. Unlike autologous CAR-T, which requires collecting and modifying the patient’s own T-cells, off-the-shelf CAR-T treatments can be manufactured in advance and stored for immediate use. This type of treatment is also known as allogeneic CAR-T. This streamlined process enables faster access to treatment, especially for patients with aggressive or rapidly progressing cancers. Also, off-the-shelf CAR-T therapies eliminate the potential logistical challenges involved in cell collection, transportation, and production. By simplifying the treatment process, off-the-shelf CAR-T therapies have the potential to improve patient outcomes and broaden access to this cutting-edge form of cancer treatment. Additionally, these treatments have the potential to be standardized and scaled up, ensuring consistent quality and reducing the variability often associated with autologous CAR-T therapy. Overall, off-the-shelf CAR-T treatments offer the promise of more accessible, cost-effective, and efficient cancer treatments, bringing hope to a greater number of patients in need. This is Caribou’s mission.
Capital is King….
When investing in biotech, you are really investing in innovation and Caribou shows great promise with their novel approach to cancer treatment. However, an important question to delve into is, does Caribou have enough funding to keep this research going? No matter the approach, it all comes back to the money. If Caribou doesn’t have the funding, they can’t continue their research, meaning investing in them could lead to losses. The good news is, Caribou seems to have a plan for funding. Currently, Caribou has enough cash for 2 years worth of funding. Moreover, they also have a partnership with AbbVie. To give a brief summary on AbbVie, AbbVie is a prominent global pharmaceutical company specializing in the research, development, and commercialization of innovative healthcare solutions. Established in 2013 as a spin-off from Abbott Laboratories, AbbVie focuses on several therapeutic areas, with a particular emphasis on immunology, oncology, neuroscience, virology, and general medicine. The company’s diverse portfolio includes a range of medications and therapies that address various diseases and conditions, such as rheumatoid arthritis, psoriasis, multiple sclerosis, Parkinson’s disease, hepatitis C, and cancer. All in all, AbbVie has a lot of money. Due to the partnership, Caribou shouldn’t have any issues with funding. Additionally, another major pharmaceutical firm has recently taken a liking to Caribou.
Now for another important question, what does Caribou’s innovative technology really mean for investors? Currently, Caribou’s market cap is around 400 million dollars. Now, if we look at the total addressable market for cancer research globally, it is around 200 billion dollars.
If Caribou can even capture 1% of 200 billion, they can earn 2 billion dollars. If they push towards 5% of the total addressable market, they can earn upwards of 10 billion dollars. If Caribou were to approach these numbers at some future date, they could easily increase the stock price by a factor of 10! Just on the simple arithmetic, Caribou Bioscience could be a very profitable company to invest in for the long run.
Late last week, there was a significant jump in Caribou’s stock price. This was due to Pfizer giving Caribou its stamp of approval in the form of a large stock purchase. When Pfizer gives Caribou Biosciences its stamp of approval, it signifies a significant validation and endorsement of Caribou’s scientific capabilities and potential. Pfizer, being a renowned global pharmaceutical company, possesses extensive expertise and resources in drug development and commercialization. With Pfizer’s stamp of approval, Caribou Biosciences gains access to Pfizer’s vast network, including its research and development capabilities, clinical trial infrastructure, and regulatory expertise. This collaboration opens doors for Caribou to leverage Pfizer’s industry experience and guidance, accelerating the translation of Caribou’s cutting-edge research into tangible therapeutic solutions. Additionally, Pfizer’s stock investment enhances Caribou’s credibility and reputation within the scientific and medical communities, attracting potential investors and partners who recognize the value of this endorsement. Overall, a partnership with Pfizer offers Caribou Biosciences a powerful boost in advancing its cancer research and increasing the likelihood of bringing effective and transformative therapies to patients in need. Pfizer’s $25 million stock purchase also adds to Caribou’s funding pile. They now have at least $291 million dollars in cash on hand to continue advancing their cutting edge research. On the back of the latest promising clinical results, management decided to take advantage of the company’s rising share price to raise an additional $125 million in research capital.
Good enough for Pfizer, good enough for you? It might be very worthwhile investing in Caribou Biosciences right now.