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After Biotech Dives Deeper Into Melanoma Data, It 'Continues to Impress'
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Details from this clinical program are discussed, along with Q2/19 earnings and the next stock catalyst, in an H.C. Wainwright & Co. report.

In an Aug. 23 research note, H.C. Wainwright & Co. analyst Joseph Pantginis reported the highlights from Targovax ASA's (TRVX:OSE) Q2/19 earnings conference call.

During the second quarter, Targovax posted an earnings per share of NOK0.72 compared to H.C. Wainwright's estimate of NOK0.65. The biotech ended Q2/19 with NOK135 million in cash, which management said was enough runway through H1/20.

Pantginis also reported details about its clinical programs that management shared in the call. One topic was data from Targovax's study of ONCOS-102 in melanoma patients who are both unresectable and refractory to anti-PD-1 therapies.

Initial results showed an overall response rate of 33% at six months. That included one complete response, two partial responses and one unconfirmed partial response. Also, despite individual responses, ONCOS-102 increased systemic and local immune activation, specifically "cytokine release and increased T cells tumor infiltration," Pantginis noted. The oncolytic adenovirus also showed response specificity, i.e., tumor antigen specific T cells.

"We believe these data to be encouraging and to position ONCOS-102 well for the interim analysis set for H1/20," commented Pantginis.

Also in the conference call, management reiterated that its mesothelioma program remains the next stock catalyst, with randomized Phase 2 data expected in January 2020. This event is made even more significant by the fact that the benchmark for mesothelioma is low, in other words reported overall survival with standard of care is six months, and few other possible, new therapeutics exist.

"We believe the data should be positive with ONCOS-102 supplying an additional layer of efficacy above the standard of care; if positive, we believe the shares could be poised for a relatively quick run to the NOK10 level," Pantginis wrote.

H.C. Wainwright has a Buy rating and price target of NOK19 per share on Targovax, whose stock is currently trading at around NOK5.02 per share.


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Disclosures from H. C. Wainwright, Targovax ASA, Earnings Update, August 23, 2019

Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placement of securities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a company or one of its affiliates or subsidiaries within the past 12 months.

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 Targovax ASA (including, without limitation, any option, right, warrant, future, long or short position).

As of July 31, 2019 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities Targovax ASA.

Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know 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 did not receive compensation from Targovax ASA 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 Targovax ASA as of the date of this research report.

H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.

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