Is an Investment in Checkpoint Therapeutics, Inc. (CKPT) Stock Meaningful?

Checkpoint Therapeutics, Inc. (CKPT) is an early-stage immunotherapeutic and targeted oncological company engaged in the development and marketing of innovative solid tumor cancer treatments for patients. The company’s ranking in the biotechnology industry is 452 out of a total of 512. According to a reputed market research firm, the size of the biotech market was around $497 billion in 2020 and is likely to grow at an annual growth rate of over 9.4% from 2021 to 2027.

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CKPT: Recent Developments

On April 28, CKPT informed that the outcomes of its pivotal cosibelimab trial in metastatic cutaneous squamous cell carcinoma had been chosen for poster presentation at the 2022 Annual Meeting of the American Society of Clinical Oncology. The meeting will be held on June 3-7, 2022. Optimistic topline results were announced in January, and submission of the Biologics License Application is anticipated for late 2022.

CKPT: Earnings

The annual revenue of the company showed a steep declining trend from 2018-onwards, with a decline of 74% in 2021’s revenue to remain at $268 thousand. The diluted EPS of the company also reported a decline of 80% over the year to be -$0.75. Revenue of $60 thousand and an EPS of -$0.59 is expected to be delivered by the company for the fiscal year 2022.

Comparison with Peers

When a comparison is made between the percentage price change of CKPT and its peers, it becomes obvious that the company recorded a 3% gain in its stock price over the year, while its peers (LJPC, FBIO, CNCE, and ADVM) also reported an inclining trend over the year. FNCH, CELC, and NYMX reported a decline in their price.

Insider Transactions, Analyst Ratings, and Risk Factors

CKPT owns 83.5 million outstanding shares, of which a majority of the shares are owned by insiders of the company i.e., 14.8%, while 13.7% shares are possessed by the institutional investors. HC Wainwright & Co.’s analyst Joseph Pantginis maintained the company’s rating to ‘Buy’, and raised its action price from $17 to $26 target price. Some risks are associated with CKPT’s stock such as lower revenue levels, current non-profitability, less than one-year cash runway, and considerable insider transactions over the last three months.

Bottom Line

Being at the bottom of the biotech industry, CKPT has the growth potential many investors are unaware of. Its revenue and earnings have the potential to grow by 58% and 55% per year.  Also, the share price is in a stable state and did not observe volatility over the last few months. These features make it ideal for the stakeholders to invest.