Gritstone Bio Inc. (GRTS) Stock Shows Both Hope and Risk

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For an investor, a wise move would be to take a look at the speculative life science company Gritstone bio, Inc. (NASDAQ: GRTS). The present timing for this biotech stock is spectacular, considering it has demonstrated, through recently published preliminary clinical data, and critical milestone updates. Moreover, the stock is trading cheap at 80% below its price at the start of 2022.

Positive Trial Updates by Gritstone

Results from the phase 1/2 research by Gritstone Bio (GRTS) focusing on the effectiveness of SLATE vaccines, turned out to be highly promising. These vaccines saw testing for the treatment of patients with KRAS mutant MSS-CRC and NSCLC. The molecular response of the candidate was 39%, which led to an overall doubling of survival rate among KRAS mutant NSCLC patients. These results confirmed findings of earlier research which affirmed this association between the candidate and treatment, through checkpoint inhibitors and another trial employing GRANITE.

Biotech technicalities aside, Gritstone is doing extremely well in developing its promising SLATE vaccine, which could be a game changer in the treatment of solid tumors and result in a value explosion.

The Major GRTS Risk

Before investing in this biotech, investors should be aware of an inherent risk that links to a critical Gritstone program, which is vital to the company’s financial sustainability. The continuing CORAL program, which is under investigation in three ongoing phases 1 trials, would be the main danger to take into account in the near future. All of these studies’ findings are anticipated to be released in the upcoming months. Although shareholders are hoping that the CORAL program successfully progresses, there is no assurance that the effectiveness of the candidate will be sufficient to justify future research. Because the market at present shows over-saturation of available Covid-19 vaccines and therapies available, it is probable that these trials will halt if the trials do not ensure the required efficacy.

Conclusion

GRTS has essentially been a high-risk high-return play that could spell a breakthrough if successful. Its recent milestone achievements are significant in establishing efficacy, yet its risks remain a point of concern for investors.

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