IMV Inc IMVIQ

PT 6,- by Leeds Jones Gable

[Biotech010]

https://r1280989.leedejonesgable.com/c/l?u=DB32D41&e=142ED0A&c=138BDD&t=0&l=58EF9432&email=YoP%2BrdcyMOb2G1OLkMJQa8Wn0ezQneeCBJcAT8xErqg%3D&seq=1

DPX-Survivac Shows Potential in Metastatic Bladder Cancer Cohort in Phase II Basket Trial - Spec BUY NS-based immune therapy developer IMV will be reporting interim tumor response data later this week at a major oncology conference (the 2022 American Association for Cancer Research (AACR) annual meeting) that will show encouraging interim responses in metastatic bladder cancer patients when treated with IMV’s leading DepoVax (DPX)-based cancer immune therapy DPX-Survivac (now called maveropepimut-S). In anticipation of formal presentation of these data, IMV pressreleased key DPX-Survivac/bladder cancer findings, and the abstract from which we extract new insights into DPX-Survivac’s anti-tumor activity is available online from the AACR itself. Bottom line. As we will describe below, new interim response rate data in a distinct advanced cancer market reflects favorably on the potential for IMV’s flagship lipidbased water-free injectable antigen delivery modality DepoVax, even though our model does not at present ascribe formal market value to advanced bladder cancer as a target indication specifically for this DPX formulation. Our DPX-Survivac royalty revenue projections are for now based on our expectations that this immune therapy will initially be FDA-approved for targeting recurrent, refractory ovarian cancer and diffuse large B-cell lymphoma. Phase II data are already available and new more comprehensive Phase II studies are either ongoing (102-patient VITALIZE trial in lymphoma) or about to be (73-patient AVALON trial in ovarian cancer). Accordingly, we await final Phase II Basket data from all enrolled bladder cancer patients in the trial before determining if this underserved cancer market merits further attention from IMV/DPX-Survivac. However, a 29% overall response rate for this advanced cancer form is strong in our view, at least to the limits of study design, and we are optimistic that more advanced bladder cancer clinical testing could be relevant in the firm’s R&D priorities in future quarters. Maintaining rating and valuation based on sustainably positive view on DPX platform and on DPX-Survivac specifically in multiple oncology markets. For now, we are maintaining our Speculative BUY rating and one-year PT of US$6.00 on IMV, with our valuation still based on NPV (25% discount rate) and multiples of our F2026 EBITDA/EPS forecasts. Our EV calculation incorporates FQ421 balance sheet data (cash of US$38.6M, total debt of US$18.0M) even though we are mindful that the firm has incurred another quarter of operating cash losses since end-of-F2021. At current levels, our PT corresponds to a one-year return of 341%.