MaxCyte May Benefit From Potential Gene Therapy Approval

Summary

• MaxCyte is a pick-and-shovel play on cell editing technology, but may capture a royalty stream from successful products.
• Vertex's potential candidate approval in the U.S. could prove a decisive catalyst ultimately validating MaxCyte's approach and business model.
• If MaxCyte's partners see commercial success, MaxCyte could be valued at multiples of its current price on potential royalties.
• However, there is almost total downside risk too, should the technology fail.

byakkaya

MaxCyte (NASDAQ:MXCT) is an attractive 'picks and shovels' play on cell and gene editing innovation. This is because they are considered to have industry-leading technology that is broadly used, and their contracts enable "low single digits" royalty payments in the event of commercial launches

Analyst’s Disclosure:I/we have a beneficial long position in the shares of MXCT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Not intended as investment advice. Author's opinion only. May contain errors/inaccuracies and will not be updated. Author's position may change without notice. Seek professional advice before any investment or tax decision. Investment in loss-making companies may lead to total loss or significant dilution.