HomeMarket NewsJones Research Bullish on Gritstone Bio, Sees Potential in Cancer and COVID-19...

Jones Research Bullish on Gritstone Bio, Sees Potential in Cancer and COVID-19 Vaccines

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Jones Research has recently initiated coverage of Gritstone Bio (NASDAQ: GRTS) with a buy rating and a price target of $10.

The research group is optimistic about Gritstone’s potential, describing it as a “highly underappreciated story” due to its vaccine candidates for SARS-CoV-2 and microsatellite-stable colorectal cancer (MSS-CRC). According to Jones Research, Gritstone’s mRNA vaccines differ from others in terms of immunogenicity and durability.

Jones Research sees the MSS-CRC market as a significant opportunity, estimating it to be worth over $2 billion. They anticipate initial data from a Phase 2/3 study for Gritstone’s vaccine to be available in Q1 2024.

The research group also recognizes the potential in the COVID-19 vaccine market, which they believe will continue to be relevant despite declining sales. Jones Research estimates the market opportunity for Gritstone’s CORAL vaccines to be around $2.8 billion, even with modest market penetration. They expect a Phase 2b data readout for Gritstone’s COVID-19 vaccine in 2025.

Jones Research highlights attractive upside potential from Gritstone’s KRAS and HIV drug candidates as well.

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