IMMP Immutep Ltd

Immutep (IMM:ASE) has entered into a clinical trial collaboration and supply agreement with Merck/Pfizer to investigate the combination of its APC activator eftilagimod alpha (efti) with avelumab in patients with advanced solid tumours. Avelumab is the big pharma pair’s investigational anti-PD-L1 immune checkpoint inhibitor (ICI). We view the additional validation from big pharma as a very positive development for Immutep, which could bring the added bonus of early identification of additional target indications. We maintain our valuation at A$510m or A$0.17/share.

Our valuation is unchanged at A$510m, 17c/share (undiluted), or 12c/share after diluting for options and convertible notes. Our valuation includes a modest allowance for expansion of efti indications beyond the ongoing studies in breast, head and neck, melanoma and lung cancers. Gross cash at 30 June was A$23.5m. We assume Immutep will receive a risk-adjusted US$6m IMP731 milestone payment from GSK in FY19, which would extend its cash reach to the end of FY20.  Click here to view the full report.

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