- HC Wainwright has initiated coverage on Denmark-based cancer firm IO Biotech Inc IOBT with a Buy rating and a price target of $10.
- The company's T-win platform works through a dual mechanism of action that involves the direct killing of immunosuppressive cells and modulation of the tumor microenvironment into a more pro-inflammatory anti-tumor environment.
- The company's lead asset, IO102-IO103, is in development for several indications in solid tumors in combination with Merck & Co Inc MRK Ketyruda (pembrolizumab), with melanoma being the most advanced indication.
- The company is now evaluating the IO102-IO103 + pembrolizumab combo in a Phase 3 study for front-line treatment of PD-1 naïve metastatic melanoma patients.
- The analyst believes expectations are low given IDO inhibitor, epacadostat, and recent Nektar Therapeutics NKTR IL-2 agonist failures in Phase 3 due to less severe patients.
- The company also has a Phase 2 basket study in 1L solid tumors, with initial data expected in 4Q22, and the analyst expects a neoadjuvant/adjuvant Phase 2 basket study to initiate in 2023.
- IO Biotech's peptide approach is differentiated as it blocks all IDO functions rather than the single function blocked by IDO inhibitors.
- HC Wainwright sees significant upside potential if initial data in 4Q22 for the basket study or interim Phase 3 melanoma data in mid-2023 are positive.
- Cash on hand of $151.2 million is expected to support operations through anticipated data readouts into mid-2024.
- Price Action: IOBT shares are down 2.84% at $2.81 on the last check Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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