On Thursday, Baird, a financial services firm, revised its price target for shares of Immutep Limited (NASDAQ:IMMP), a biotechnology company focused on immunotherapy treatments for cancer and autoimmune diseases. The price target has been reduced to $6.00 from the previous $7.00. Despite this change, Baird has chosen to maintain an Outperform rating for the company's stock.
The adjustment follows Immutep's recent announcement of phase 2b trial outcomes for its leading drug candidate, efti, which is being developed to treat head and neck squamous cell cancer (HNSCC). Baird's analyst acknowledged a favorable trend in the objective response rate (ORR), suggesting a drug effect. However, the analyst pointed out that the magnitude of the effect was somewhat below expectations.
Baird's stance remains positive on Immutep's prospects, particularly for efti in non-small cell lung cancer (NSCLC), which is considered the most promising setting for the drug. The firm's continued Outperform rating indicates a belief in the company's potential for above-average returns.
Immutep's efti, as a lead agent, has been under investigation in the phase 2b trial specifically for its effectiveness in treating HNSCC. While the results have led to a modest reduction in the price target, Baird's analysis suggests that there is still value in the drug, especially in other cancer indications such as NSCLC.
In other recent news, Immutep Limited has entered into an exclusive licensing agreement with Cardiff University to acquire rights to a new generation of anti-LAG-3 molecules. This strategic move is aimed at enhancing Immutep's oncology portfolio. These molecules, developed by Cardiff University researchers, target LAG-3, a protein often exploited by cancer cells to evade the immune system, and could potentially bolster the immune response against various cancers. Details regarding the financial terms of the agreement were not disclosed.
In addition to this, CapitalOne has initiated coverage on Immutep with an Overweight rating, acknowledging the potential of the company's cancer drug, eftilagimod alpha (efti). Currently in trials for five different oncology indications, efti has shown promising results when combined with standard care therapies for non-small cell lung cancer (NSCLC) and metastatic breast cancer (mBC). CapitalOne's evaluation highlighted the robustness of the clinical data and Immutep's readiness for pivotal studies, estimating peak sales for efti to reach approximately $4.3 billion in 2040.
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