Replimune Gets 33% Price Target Bump Ahead Of Upcoming Readouts. Analyst Lists The Catalysts

BMO Capital Markets raised the price target on Replimune Group Inc REPL to $40 from $30 on a bullish view into upcoming data readouts for lead asset RP1 in melanoma and cutaneous squamous cell carcinoma (CSCC).
The analyst says robust safety and clinical benefit would give confidence in RP1 in earlier lines of treatment and earlier assets, RP2 and RP3.
The analyst expects RP2 updates later this year for the monotherapy and RP2+Opdivo combo. RP3+Opdivo combo initial data is also expected later in 2022.
RP1 data demonstrates superiority over Amgen Inc’s AMGN Imlygic (approved in 2015 for r/r melanoma, $67M revs 2021), and broader adoption and commercial success are expected.
Early combo data in CSCC showed 64% ORR, with a CR of 47.1%. This is a meaningful improvement vs. PD1i monotherapy (Libtayo 47% ORR and 4% CR; Keytruda 34% ORR and 4% CR; Opdivo 55% ORR and 0% CR), the analyst says.
Last year, Replimune obtained a $200 million non-dilutive term loan facility from Hercules Capital Inc HTGC.
This non-dilutive capital extends the cash runway into 2025.
Price Action: REPL shares are up 5.38% at $18.71 on the last check Friday.

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