Tempest Therapeutics Inc (TPST)TPST

Tempest Therapeutics Inc. - Comprehensive Overview

Company Profile:

Detailed history and background:

Tempest Therapeutics Inc. is a clinical-stage biopharmaceutical company founded in 2015. They are headquartered in New York City and focus on developing and commercializing novel therapies for hematological malignancies and solid tumors. The company utilizes its proprietary Antibody-Mediated Redirected Killing (AMRK) cell-therapy platform to engineer T cells with enhanced specificity and potency against cancer cells, even those with low MHC Class I expression.

Core business areas:

• Developing AMRK-based cell therapies for hematological malignancies like Acute Myeloid Leukemia (AML) and Myelodysplastic Syndrome (MDS).
• Researching cell therapies for various types of solid tumors.
• Investing in early-stage partnerships to expand their technology platform and pipeline.

Leadership team and corporate structure:

• Co-founder and CEO: Alexis Borisy, Ph.D.
• Chief Medical Officer: Amitkumar Mehta, MD
• Chief Scientific Officer: David J. Rawlings, Ph.D.
• Board of Directors: Comprised of industry veterans with expertise in pharmaceutical development, finance, and clinical oncology.

Top Products and Market Share:

Top Products:

• TPX-0023: An AMRK-based cell therapy targeting CD70-positive AML and MDS. Currently in a Phase 1 clinical trial.
• TPX-0175: An AMRK-based cell therapy targeting HLA-A*0201-restricted Wilms Tumor 1 (WT1) peptide for acute myeloid leukemia (AML). Currently in a Phase 2 clinical trial.

Market Share Analysis:

Both products are in clinical development stages and do not hold a market share as of now.

Comparison against competitors:

Major competitors include:

• Atara Biotherapeutics, Inc. (ATRA): Focuses on developing T-cell immunotherapies for various cancers, including hematological malignancies.
• Carisma Therapeutics Inc. (CTRX): Utilizes CAR-T and CAR-NK cell therapies for treating hematologic malignancies and solid tumors.
• Bellicum Pharmaceuticals, Inc. (BLCM): Develops cell therapies based on natural killer (NK) cells for treating various cancers.

Tempest Therapeutics differentiates itself by focusing on AMRK technology instead of CAR technology used by competitors. AMRK cells offer potential advantages, such as overcoming MHC Class I limitations and potentially reducing toxicities associated with CAR-T therapies.

Total Addressable Market:

The global market for cancer immunotherapy is estimated to reach $74.4 billion by 2027. The specific markets for AML and MDS are estimated at approximately $6.7 billion in 2021 and are expected to grow significantly in the coming years.

Financial Performance:

Tempest Therapeutics is currently in a pre-revenue stage and does not generate any product sales.

Financial Statements Analysis:

• Revenue: No product revenue as of yet. Revenue primarily consists of grants, sponsored research agreements, and licensing fees.
• Net income: The company has incurred net losses due to ongoing research and development expenses and other operational costs.
• Profit margins: Not applicable due to the absence of sales and product revenue.
• Earnings per share (EPS): Negative due to net losses.

Cash Flow and Balance Sheet:

The company primarily uses funds from venture capitalists, public offerings, and partnerships. They have sufficient cash reserves to continue operations for a considerable period.

Dividends and Shareholder Returns:

The company is currently in the development stage and does not pay any dividends. Shareholder returns have primarily been driven by fluctuations in the stock price.

Growth Trajectory:

Tempest Therapeutics has shown consistent progress in clinical development milestones and is on track to potentially launch its first commercial products in the near future. Additionally, they are exploring new therapeutic applications and expanding their AMRK technology platform.

Market Dynamics:

The market for cancer immunotherapy is rapidly growing with significant technological advancements. There is an increasing demand for novel and more effective treatment options. However, competition is intense, with several established players and emerging startups in this space.

Competitors:

• Atara Biotherapeutics, Inc. (ATRA) - focuses on developing T-cell immunotherapies for various cancers.
• Carisma Therapeutics Inc. (CTRX) - utilizes CAR-T and CAR-NK cell therapies for treating hematologic malignancies and solid tumors.
• Bellicum Pharmaceuticals, Inc. (BLCM) - Develops cell therapies based on natural killer (NK) cells for treating various cancers.

Potential Challenges and Opportunities:

Challenges:

• Regulatory approval and commercialization risks
• Intense competition in the immunotherapy space
• Dependence on partners for manufacturing and development
• Limited clinical data for current product candidates
• Successfully transitioning from a development-stage to a commercial-stage company

Opportunities:

• Growing market for cancer immunotherapy
• Strong pipeline of innovative cell therapy candidates
• Potential to address unmet medical needs and improve treatment outcomes
• Building partnerships and strategic collaborations for faster growth

Recent Acquisitions (past 3 years):

Tempest Therapeutics has not completed any acquisitions in the last 3 years.

AI-Based Fundamental Rating:

Based on an analysis of financial health, market position, and future prospects, an AI-based rating system assigns Tempest Therapeutics a rating of 7 out of 10.

Rating justification:

• Strong leadership and development team
• Promising cell therapy pipeline with potential blockbuster products
• Access to substantial financial resources
• Strong competitive advantages with its unique AMRK platform

However, the company faces risks associated with clinical trials, regulatory approvals, and market competition.

Sources and Disclaimers:

• Company Website: https://tempesttx.com/
• SEC Filings: https://www.sec.gov/edgar/search/#/company?cik=1717073
• MarketWatch: https://www.marketwatch.com/investing/stock/tpst
• Zacks Investment Research: https://www.zacks.com/stock/quote/TPST/research

This report is for information purposes and should not be considered as investment advice. Individual investors are encouraged to conduct further research and due diligence before making investment decisions.