IMV Inc. (IMV:NASDAQ; IMV:TSX) immunotherapy Maveropepimut-S (MVP-S), in combination with Keytruda, resulted in complete responses in the VITALIZE Phase 2b trial in relapsed and refractory diffuse large B cell lymphoma patients having received three or more previous lines of treatment, reported Dr. Joseph Pantginis, H.C. Wainwright & Co. managing director of equity research, in a Dec. 21 research note.
"The therapy has been well tolerated, and signs of clinical activity in such a highly refractory patient population may represent a path to registration in diffuse large B cell lymphoma," wrote Pantginis.
He noted that IMV management considers the data encouraging and increasing enrollment an indication of growing interest in the treatment for this indication. Detailed VITALIZE results will be presented at the Immuno-Oncology 360° conference in Q1/23.
Attractive Potential Return
In other news, H.C. Wainwright raised its target price on IMV by 400% to US$65 per share from US$13 to reflect the recent 1-for-10 reverse split and adjustments to the fully diluted share count and the base year. Given the difference between the target price and where the life sciences firm is now trading, about US$2.63 per share, the potential return for investors is significant.
H.C. Wainwright raised its target price on IMV by 400% to US$65 per share from US$13.
"We acknowledge the large distance between the current share price and our price target but highlight two key factors," Pantginis wrote, "the new very low share count from the reverse split significantly impacting our net present value and consideration of the implied market cap of approximately US$1 billion off of fully diluted shares representing approximately only one times our projected revenue for MVP-S for either ovarian [cancer] or diffuse large B cell lymphoma."
IMV is solely focused on advancing this lead asset in hematologic and solid tumors, Pantginis highlighted, and recently made two moves to better position itself to do so. One was drawing the remaining US$10 million (US$10M) of its US$25M debt facility after reaching the requisite milestone of site activation for the Phase 2b AVALON trial in platinum-resistant ovarian cancer. The other move was completing a business restructuring.
What to Watch For
Upcoming catalysts for IMV, along with full data from VITALITY in Q1/23, are:
1) Continued enrollment and dosing for the AVALON Phase 2b trial of MVP-S in combination with low-dose cyclophosphamide in patients with recurrent, platinum-resistant ovarian cancer. Initial clinical response results are anticipated in H2/23.
2) Clinical updates on the Phase 2 trial of MVP-S for advanced or metastatic bladder cancer and neoadjuvant Phase 1 studies in HR+/HER2- breast cancer, to be presented at medical conferences.
H.C. Wainwright has a Buy rating on IMV.
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Disclosures For H.C.Wainwright & Co., IMV Inc., December 21, 2022
H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer.
I, Joseph Pantginis, Ph.D. , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst’s household has a financial interest in the securities of IMV Inc. (including, without limitation, any option, right, warrant, future, long or short position). As of ovember 30, 2022 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of IMV Inc..
Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report. The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The firm or its affiliates received compensation from IMV Inc. for non-investment banking services in the previous 12 months. The Firm or its affiliates did not receive compensation from IMV Inc. for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report. The Firm does not make a market in IMV Inc. as of the date of this research report.
The securities of the company discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is no guarantee of future results. This report is offered for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. This research report is not intended to provide tax advice or to be used to provide tax advice to any person.
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