Key catalysts are coming for Immunovaccine, Mackie Research says

Biotech firm Immunovaccine Technologies (Immunovaccine Stock Quote, Chart, News: TSX:IMV) has announced that it has applied to list on the NASDAQ exchange, and with a number of study results expected over the rest of 2018, analyst Andre Uddin of Mackie Research is staying bullish on the company, maintaining his “Speculative Buy” rating with a revised target price of $8.70.

Halifax-based Immunovaccine announced on Thursday that it has applied to list its common shares on the NASDAQ and will be implementing a consolidation of its outstanding shares along with a corporate name change to IMV Inc.

CEO Frederic Ors says that it’s the right time for the US listing, considering the number of milestones upcoming for the company.

“In an effort to deliver value to our shareholders and partners, our Company has made remarkable progress in positioning and validating our unique value proposition in immuno-oncology,” said Ors in a press release. “On June 3 at the 2018 American Society of Clinical Oncology (ASCO) Annual Meeting, we will present new data from our ongoing Phase 1b/2 advanced ovarian cancer study in collaboration with Incyte. This year, we also plan to publish data from two additional oncology clinical studies (with our partner Merck), to expand our immuno-oncology clinical program, and to continue to leverage the novel aspects of our technology and the potential of our clinical candidates.”

The share consolidation, in effect as of May 2, is effectively a reverse split at a rate of 3.2:1, with the new shares to begin trading under the IMV Inc. name on the TSX on May 10.

Uddin says that there are a number of catalysts upcoming for the company related to its T-cell targeting therapy, DPX-Survivac, including: (i) the top-line results of the ongoing Phase 1b study in collaboration with Incyte; (ii) preliminary results of a DPX-Survivac/Merck Keytruda Phase II study in ovarian cancer, expected by mid-2018; (iii) preliminary results of a DPX-Survivac/Merck PD-1 checkpoint inhibitor Phase II study, expected by mid-2018; (iv) potential licensing deals for DPX-Survivac and DPX-RSV; and data from the challenge study with IMV’s DPX-RSV vaccine candidate.

“We are maintaining our “Speculative Buy” rating and changing our target price to C$8.70 to account for the reverse share split,” says the analyst in a note to clients on Thursday. “Our valuation is based on applying a 25x P/E multiple to our 2020 f.d. EPS estimate of C$1.56 and discounting back by 65 per cent.”

Uddin’s adjusted target of $8.70 (previously $2.70) represents a projected return of 346 per cent at the time of publication.