Edison initiates coverage of Chimeric Therapeutics at 93 cents per basic share with launch of scorpion venom CAR-T seen in 2027 or earlier

Edison has initiated coverage of newly-listed Chimeric Therapeutics Ltd (ASX:CHM), valuing the biotech at $307 million or 93 cents per basic share or 87 cents per diluted share, with peak sales of $3.21 billion and a launch of its scorpion venom CAR-T therapy for glioblastoma multiforme (GBM), in 2027 or earlier.

If the data is strong enough, the approval timeline may be accelerated due to the high unmet medical need in GBM.

Edison's assumptions will be adjusted as CLTX-CAR T advances through clinical studies.*Potential for use in other tumour types*

Chimeric in-licensed the CLTX-CAR T programme from the City of Hope National Medical Center in September 2020.

Under the terms of the agreement, Chimeric will pay US$10 million in six instalments over 30 months.

There are also potential development, regulatory and commercial milestones as well as a single-digit royalty and a 5% equity stake in the company.

The initial focus of the new programme will be glioblastoma multiforme (GBM), but it could potentially also be applied to other tumour types, especially those of neuroectodermal origin (primarily brain but also including melanomas and small cell lung cancer).