Immunovaccine is undervalued, says Mackie Research Capital

A quarter that was about in-line with his expectations has Mackie Research Capital analyst André Uddin feeling good about Immunovaccine (Immunovaccine Stock Quote, Chart, News: TSX:IMV) and its vaccine delivery platform, DepoVax.

Yesterday, Immunovaccine reported its Q3, 2016 results. The company lost $1.89-million on zero revenue.

“Our achievements during the third quarter of 2016 reinforced the strong progress that ImmunoVaccine has established across all three pillars that support the long-term success and value proposition for our DepoVax-based pipeline,” said CEO Frederic Ors. “In immuno-oncology, we continued to demonstrate growth and our commitment to developing new treatments for ovarian cancer. We advanced partnerships and showed steady clinical progress in this disease area, which is one of the most unmet medical needs in today’s oncology landscape.”

Uddin says the results were essentially in-line with his expectations, but cautions that financial results aren’t as important for development stage biotechs.

“Investors should remain focused on the clinical results being generated – the company’s vaccine delivery platform DepoVax continues to shine. Catalysts pertaining to DepoVax assets (DPX-RSV and DPX-Survivac) should remain key drivers,” said the analyst.

In a research update to clients today, Uddin maintained his “Speculative Buy” rating and one-year price target of $1.85 on Immunovaccine, implying a return of 157 per cent at the time of publication.

Uddin thinks IMV will lose $0.07 a share on revenue of just $200k in fiscal 2016. He expects these numbers will improve to a loss of $0.06 a share on a topline of $3.1-million the following year. The analyst expects 2018 will be a breakout year, with earnings of $0.22 on revenue of $36.9-million.