Agenus Inc (NASDAQ:AGEN) and its optimized approach on a validated mechanism (CTLA-4) offer a rare investible opportunity in immuno-oncology (IO), wrote Baird Equity Research analysts in a note published on Monday.
They initiated coverage of the clinical-stage biopharmaceutical company focused on developing and commercializing IO therapies with an ‘Outperform’ rating and $8 per share price target.
“With multiple value-inflection points over the next 12 months across three Phase 2 trials and further potential expansion (ovarian, NSCLC, sarcoma), we see meaningful upside ahead,” the analysts said.
The company’s Botensilimab (CTLA-4) and balstilimab (PD-1) candidates have shown early activity in typically non-responsive (cold) tumors well above other CTLA-4/PD-1 combos, supporting a differentiated profile, they noted.
Analysts at Baird stated that CTLA-4, which employs an enhanced Fc (fragment crystallizable) region leading to improved binding (better efficacy) and avoidance of complement binding (better tolerability), is a validated target in treating cancer, and data from the Phase 1 study have shown activity in multiple ‘cold’ tumor settings, including as a monotherapy and in combination with balstilimab (Agenus’s PD-1 inhibitor).
As well, the analysts wrote that based on early data, Agenus has initiated three Phase 2 studies, including in MSS (microsatellite stable) colorectal cancer (CRC), melanoma, and pancreatic cancer.
“All told, we expect multiple meaningful updates that should substantially de-risk the profile of botensilimab in the coming ~12 months,” they added.
Furthermore, the Baird analysts assert that Agenus has a strong track record with multiple partnerships ($825M+ in cash to date) with big players in pharma (think Bristol, Merck, Gilead, et al.), which “gives us confidence in the current lead assets and bodes well for future candidates."
Shares of Agenus climbed 8% to $1.87 in afternoon trading on Tuesday.
Contact Sean at sean@proactiveinvestors.com