Key insights
- BofA reiterated an Underperform rating on Lyell Immunopharma after J&J discontinued a competing CAR-T therapy. While removing a competitor, the move raises concerns about the commercial viability of dual CD19/CD20 CAR-T therapies. Lyell faces financial challenges, including a high cash burn rate and declining revenue, outweighing the benefit of reduced competition. BofA questions the potential for broad uptake given competition from other modalities.
Investing.com - BofA Securities reiterated an Underperform rating and $12.00 price target on Lyell Immunopharma (NASDAQ:LYEL) shares following Johnson & Johnson’s decision to discontinue development of a competing therapy.
Johnson & Johnson announced it is discontinuing development of JNJ-4496, its dual CD19/CD20 CAR-T program, citing portfolio prioritization and its assessment of the treatment landscape. The decision removes a competitor to Lyell’s ronde-cel program.
BofA analyst Geoff Meacham said the news represents a setback for Lyell despite the removal of a competitive overhang. Both assets were structurally similar, with early efficacy data showing overall response rates of 91% for JNJ-4496 versus 93% for Lyell’s program.The company faces significant financial headwinds, with InvestingPro Tips highlighting that Lyell is quickly burning through cash and analysts anticipate a sales decline in the current year. Revenue dropped 41% in the last twelve months, while the company’s Financial Health Score registers as "WEAK."
The firm said Johnson & Johnson’s decision to exit the opportunity raises concerns about the commercial case for dual CD19/CD20 CAR-T therapies. BofA’s key opinion leaders have questioned whether dual targeting CAR-T can meaningfully improve durability and efficacy versus existing CD19 CAR-T therapies, particularly given that many cases of antigen loss are driven by lineage shift resulting in downregulation of CD20 expression.
BofA said competition from other modalities including bispecifics moving earlier into the treatment paradigm and Gilead’s established position in the market limit the potential for broad uptake of dual CD19/CD20 CAR-T therapies.
In other recent news, Lyell Immunopharma reported its fourth-quarter 2025 earnings and provided corporate updates, with Citizens maintaining a Market Outperform rating and a $34.00 price target based on a revenue and earnings multiple analysis. The company has successfully closed a $50 million equity tranche, completing a $100 million equity private placement initially announced in July 2025. This closing follows a clinical milestone in the PiNACLE pivotal trial, which evaluates ronde-cel in patients with relapsed/refractory large B-cell lymphoma. H.C. Wainwright reiterated a Buy rating with a $45.00 price target, noting the commencement of patient dosing in the Phase 3 PiNACLE-H2H trial. This trial is significant as it compares ronde-cel to other treatments in second-line relapsed/refractory large B-cell lymphoma. Additionally, Citizens initiated coverage on Lyell Immunopharma with a Market Outperform rating and a $34.00 price target, focusing on the potential of the company’s lead therapy, Ronde-Cel. These developments highlight Lyell’s ongoing efforts in advancing its clinical trials and securing financial backing.
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