Cavendish has described CelLBxHealth PLC (AIM:CLBX, FRA:DWV) research collaboration with The Royal Marsden NHS Foundation Trust as an important validation of the AIM-listed company's proposition that circulating tumour cell DNA can deliver actionable clinical information where standard liquid biopsy falls short.
The broker, which acts as CelLBxHealth's nominated adviser and corporate broker, has a 4p price target, implying upside of 344% to the current share price of 0.90p.
The collaboration, announced earlier today, will see CelLBxHealth and The Royal Marsden jointly conduct a prospective clinical study in 200 patients with advanced non-small cell lung cancer, focusing specifically on the 10-15% of patients whose circulating tumour DNA testing returns uninformative results.
Cavendish argues the study targets a clearly defined and underserved patient cohort, and that demonstrating CTC-derived DNA can identify actionable mutations in this group would represent a meaningful step in embedding CTC-based approaches alongside existing molecular diagnostic workflows.
The broker sees the tie-up as supporting CelLBxHealth's longer-term commercial strategy, with results expected by year-end.
Analysts Adam McCarter and Chris Donnellan leave their forecasts unchanged, with the company expected to narrow its adjusted EBITDA loss from £13.1 million in 2025 to £4.0 million in 2026, as revenues recover to £3.6 million from £1.4 million.
The path to profitability is projected to extend to 2028, when the broker forecasts adjusted EBITDA breaking even at £0.1 million on revenues of £8.3 million.