MaxCyte: Building the Future of Cell and Gene Therapy Innovation

Key Points

• MaxCyte’s proprietary Flow Electroporation technology enables drug developers to introduce genetic material into cells efficiently.
• MaxCyte generates revenue from Strategic Platform Licenses (SPLs), which it values at $85 million a piece. It has 29 active SPLs with a potential $2.4 billion in revenues if they all receive FDA approval.
• MaxCyte has a consensus analyst price target of 92.3% higher at $9.50.

MaxCyte Inc. NASDAQ: MXCT is a global developer of next-generation cell therapies. They provide crucial technology for cell and gene therapies. Their core ExPERT ATx, sTX, GTx, and VLx tools use their proprietary technology called Flow Electroporation, which has been optimized for safe and efficient cell engineering.

The medical sector company has enabled biotechnology companies to develop and bring breakthrough treatments to the market. Maxcyte’s technology helped Vertex Pharmaceuticals Inc. NASDAQ: VRTX and CRISPR Therapeutics AG NASDAQ: CRSP to develop the world's first FDA-approved gene-editing treatment for sickle cell disease (SCD), Casgevy.

What Is Flow Electroporation Technology?

MaxCyte’s Flow Electroporation technology enables drug developers to efficiently introduce genetic material like RNA and DNA into cells. For cell therapy, they help engineer immune cells like CAR-T cells to fight cancer. Gene editing tools like CRISPR/Cas-9 molecular scissors are delivered to help correct genetic defects. It's also effective for vaccine development and drug discovery.

Engineering Casgevy to Enable Successful Gene-Editing

MaxCyte’s Flow Electroporation technology delivers CRISPR/Cas-9 gene-editing tools to a patient’s T cells. The technology uses electrical pulses to create temporary pores in the cell membrane, which allows the gene-editing tools to enter the cells efficiently. MaxCyte's technology ensures that a large number of T cells are successfully edited with CRISPR/Cas-9 molecular scissors, which is critical for the effectiveness of the therapy.

Casgevy enables CRISPR/Cas-9 to edit the BCL11A gene in stem cells to produce fetal hemoglobin. The edited genes are infused into a patient's bone marrow to start producing red blood cells with high levels of fetal hemoglobin interfering with the sickling of red blood cells, reducing the frequency and severity of vaso-occlusive crises and other complications associated with SCD.

MaxCyte Raises Q4 Guidance Driven by SPL Revenue

MaxCyte sells electroporation tools and Strategic Platform License (SPLs). The net present value (NPV) of an SPL is $85 million, according to MaxCyte. The company has 29 active SPLs, which implies a potential windfall of $2.4 billion if all treatments were to get FDA approval. On Jan 13, 2025, MaxCyte raised its revenue guidance to $8.3 million to $8.5 million versus $7.77 million consensus analyst estimates.

Full-year 2024 revenue is expected to be between $32.2 million and $32.4 million versus $29.8 million in the year-ago period. This represents an 8% to 9% growth in SPL-related revenue. The company has $190 million in cash and cash equivalents, up from the $175 million initial guidance.

MaxCyte CEO Maher Masoud commented in its Q3 2024 earnings release, “So far in 2024, we have signed six new SPLs, which represents a record number of new SPL clients in a single year for MaxCyte. Our most recently signed SPL, Kamau Therapeutics, brings our total number of SPLs to 29. We are very excited by our customers’ progress on their programs and remain focused on providing them with the best support possible in their development efforts.”

Masoud concluded, “As we expand our technology to more customers and programs, the ExPERT Platform supports a growing number of technologies requiring multiple edits and steps, as well as therapies in a range of new indications.”

MXCT Triggers a Bull Flag Breakout

A bull flag pattern is comprised of two parts. First, the underlying stock forms the flagpole, which is a steep stock price run-up, usually at a 45-degree or higher angle. The flagpole completes when the stock forms its peak. The flag is formed on the parallel descending trendlines comprising lower and lower highs. The bull flag triggers when the stock surges through its upper descending trendline and past the peak of the flagpole.

MXCT formed a bull flat breakout after surging through the descending upper trendline resistance at $4.07. The daily anchored VWAP support rises to $4.06. The raised guidance helped drive the breakout. The daily RSI is rising at the 65-band. Fibonacci (Fib) pullback support levels are at $4.56, $4.33, $3.97, and $3.71.

MXCT stock’s average consensus price target is 92.31% higher at $9.50, and its highest analyst price target sits at $11.00. It has three analysts' Buy ratings. The stock has a 3.14% short interest.

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