Estrella Immunopharma, Inc. (NASDAQ: ESLA) Receives Buy Rating With a Price Target of $14.00 From CB Capital Partners

Rhea-AI Summary

Estrella Immunopharma (NASDAQ: ESLA) has received a Buy rating with a $14.00 price target from CB Capital Partners, who will serve as financial advisor for their Initiation Research Report. The analysis focuses on Estrella's proprietary ARTEMIS® T-cell platform and their lead candidate EB103.

The report highlights three key aspects: 1) Superior safety and efficacy of EB103, showing high response rates without severe cytokine release syndrome or neurotoxicity syndrome; 2) Expanded patient access, particularly for high-risk non-Hodgkin lymphoma patients including those with HIV-associated and CNS lymphoma; 3) Strong strategic appeal due to the platform's innovative design and potential for expedited regulatory pathways.

Positive

• Received Buy rating and $14.00 price target from CB Capital
• EB103 demonstrates high response rates with superior safety profile
• Platform enables treatment of previously excluded patient populations
• Potential for expedited regulatory pathways and orphan drug designations

Negative

• None.

Insights

Financial Analyst

Estrella Immunopharma has received a Buy rating with a $14.00 price target from CB Capital Partners, representing potential upside of approximately 1,273% from the current $1.02 share price. While this appears extremely bullish at first glance, investors should approach this rating with appropriate context.

The coverage initiation highlights several strengths of Estrella's ARTEMIS® T-cell therapy platform, particularly its EB103 candidate, which has demonstrated promising safety and efficacy profiles in early clinical data. The technology's ability to address limitations of traditional CAR-T therapies through enhanced T-cell persistence and reduced toxicity could represent a genuine competitive advantage in the crowded immunotherapy landscape.

However, a critical disclosure in the announcement reveals that Estrella previously engaged CB Capital Partners specifically to prepare this research report - creating an inherent conflict of interest that tempers the significance of this rating. This arrangement differs substantially from independent analyst coverage initiated by major investment banks based on institutional client interest.

From a business development perspective, the positioning of EB103 for high-risk non-Hodgkin lymphoma patients, including those with HIV-associated and CNS lymphoma who are often excluded from existing therapies, demonstrates a strategic approach to market differentiation and potential expansion of addressable patient populations.

Oncology Expert

The clinical positioning of Estrella's ARTEMIS® platform warrants attention within the competitive CAR-T landscape. The reported absence of severe cytokine release syndrome (CRS) and immune effector cell-associated neurotoxicity syndrome (ICANS) in EB103's clinical data represents a potentially significant advancement, as these toxicities remain the primary limiting factors for current FDA-approved CAR-T therapies.

The platform's apparent ability to treat patients with HIV-associated lymphomas addresses an important underserved population. Current CAR-T manufacturing protocols typically exclude HIV-positive patients due to viral contamination concerns during the manufacturing process. Similarly, patients with CNS involvement are often excluded from CAR-T trials due to concerns about neurotoxicity, which can be life-threatening.

However, the article lacks specific details about trial phases, patient numbers, response durability, or comparative data against standard-of-care treatments. Without this information, it's difficult to fully evaluate EB103's true clinical potential. The company appears to be in early clinical development, which carries substantial execution risk typical of biopharmaceutical companies at this stage.

While the safety profile could potentially enable treatment at non-specialized centers (expanding market reach), oncology practice typically requires substantial real-world evidence beyond early trials before community adoption occurs for complex cellular therapies.

EMERYVILLE, Calif.--(BUSINESS WIRE)-- Estrella Immunopharma, Inc. (NASDAQ: ESLA) (“Estrella” or the “Company”), a clinical stage biopharmaceutical company developing CD19 and CD22-targeted ARTEMIS^® T-cell therapies to treat cancer and autoimmune diseases, today announced that CB Capital Partners has initiated coverage on the Company with a Buy rating and a price target of $14.00.

“We appreciate CB Capital’s detailed evaluation of our proprietary ARTEMIS^® T-cell platform and the progress we have made with EB103,” said Dr. Cheng Liu, President and Chief Executive Officer of Estrella. “Their report highlights the unique attributes of our approach to T-cell therapy and underscores the potential for our pipeline to deliver transformative treatments to cancer patients.”

Key Insights from CB Capital’s Report:

• Superior Safety and Efficacy:
  The Company’s proprietary ARTEMIS^® platform is engineered to overcome limitations of traditional CAR-T therapies by enhancing T-cell persistence, tumor specificity, and overall safety. Clinical data for EB103 have shown high response rates with no severe cytokine release syndrome (CRS) or immune effector cell-associated neurotoxicity syndrome (ICANS), positioning EB103 as a best-in-class therapy for hematological malignancies.
• Expanded Patient Access:
  EB103 addresses a significant unmet need by extending treatment to high-risk non-Hodgkin lymphoma (NHL) patients—including those with HIV-associated and central nervous system (CNS) lymphoma—who are often excluded from existing therapies. Its favorable safety profile and reduced toxicity increase the potential for wider adoptions beyond specialized centers, making life-saving immunotherapy more accessible to underserved patient populations.
• Strong Strategic Appeal:
  The innovative design and clinical potential of the ARTEMIS^® platform position Estrella as an attractive candidate for strategic investment, licensing, or acquisition. The potential of expedited regulatory pathways and orphan drug designations further bolster the Company’s long-term investment appeal.
  
  

The Company previously entered into an engagement agreement with CB Capital Partners in which CB Capital Partners will serve as financial advisor in connection with the preparation of an Initiation Research Report (the “Report”) and will conduct an independent analysis of Estrella’s business model, financial outlook and market positioning. The Report will, among other things, provide a comprehensive review of Estrella’s corporate history, strategic objectives, financial projections, and industry comparables.

A copy of CB Capital Partners’ research report can be accessed directly from CB Capital Partners or its affiliated research platform.

The price target and rating referenced herein were assigned by CB Capital Partners and represent its independent opinion of the Company’s securities. The Company does not endorse or affirm the accuracy or conclusions of the analyst’s report. A rating is not a recommendation to buy, sell or hold securities, and each rating should be evaluated independently of any other rating. Price targets are subject to inherent market risks, macroeconomic factors and future developments that may cause actual results to differ materially. Investors should not place undue reliance on any price target or analyst report, and such information should be considered alongside other available financial and market information.

About CB Capital

Founded in 2001, CB Capital Partners was formed with a focus on delivering investment banking services to companies seeking to profit from the opportunities that emerge during inevitable changes in the business cycle. In 2001, the firm was launched to advise and lead companies through periods of disruptive change. Chris Baclawski (Goldman Sachs and CB Richard Ellis Investors) launched the firm. The firm’s West Coast team brings decades of transactional expertise and a deep understanding of market dynamics to support clients in achieving their strategic and financial goals. The professionals at firm have leveraged their business acumen and network to guide clients to successful financing and mergers and acquisitions engagements structured to maximize value over the term of the investment. The firm’s experienced professionals help clients analyze financial alternatives, identify strategic and financial sources of capital, and structure and negotiate terms, which meet their objectives.

About EB103

EB103, a T-cell therapy, also referred to as Estrella’s “CD19-Redirected ARTEMIS^® T-Cell Therapy,” utilizes ARTEMIS^® technology licensed from Eureka Therapeutics, Inc. (“Eureka”), Estrella’s parent company. Unlike a traditional CAR-T cell, the unique design of an ARTEMIS^® T-Cell, like EB103 T-cell, allows it to be activated and regulated upon engagement with cancer targets that use cellular mechanisms more closely resembling those triggered by endogenous T-cell receptors. Once infused, EB103 T-cells seek out CD19-positive cancer cells, bind to these cells, and destroy them.

About Estrella Immunopharma, Inc.

Estrella is a clinical-stage biopharmaceutical company developing CD19 and CD22-targeted ARTEMIS^® T-cell therapies to treat cancers and autoimmune diseases. Estrella’s mission is to harness the evolutionary power of the human immune system to transform the lives of patients fighting cancer and other diseases. To accomplish this mission, Estrella’s lead product candidate, EB103, utilizes Eureka’s ARTEMIS^® technology to target CD19, a protein expressed on the surface of almost all B-cell leukemias and lymphomas. Estrella is also developing EB104, which also utilizes Eureka’s ARTEMIS^® technology to target not only CD19, but also CD22, a protein that, like CD19, is expressed on the surface of most B-cell malignancies.

For more information about Estrella, please visit www.estrellabio.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including but not limited to those regarding the potential benefits and therapeutic advantages of EB103 and ARTEMIS® T-cell therapy, the potential for EB103 to address limitations of current commercially available CAR-T therapies, and the future development plans for EB103, are based on our management’s current expectations, estimates, forecasts, and projections about the industry and markets in which we operate and our management’s current beliefs and assumptions. These statements may be identified by the use of forward-looking expressions, including, but not limited to, “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “potential,” “predict,” “project,” “should,” “would” and similar expressions and the negatives of those terms. These statements relate to future events or our financial performance and involve known and unknown risks, uncertainties, and other factors that could cause actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission. The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250305134461/en/

Investor Relations

Estrella Immunopharma, Inc.

IR@estrellabio.com

Source: Estrella Immunopharma, Inc.

FAQ

What is the price target set by CB Capital Partners for Estrella Immunopharma (ESLA)?

CB Capital Partners initiated coverage with a Buy rating and set a price target of $14.00 for Estrella Immunopharma.

What are the key advantages of ESLA's EB103 treatment compared to traditional CAR-T therapies?

EB103 shows enhanced T-cell persistence, tumor specificity, and better safety with high response rates, no severe cytokine release syndrome or neurotoxicity syndrome.

Which patient populations will benefit from Estrella's EB103 treatment?

EB103 targets high-risk non-Hodgkin lymphoma patients, including those with HIV-associated and central nervous system lymphoma, who are often excluded from existing therapies.

What strategic advantages does Estrella Immunopharma (ESLA) possess according to CB Capital?

ESLA's ARTEMIS platform makes it attractive for strategic investment, licensing, or acquisition, with potential expedited regulatory pathways and orphan drug designations.