Cowen’s healthcare analyst Boris Peaker came out with an update on Celldex Therapeutics (NASDAQ:CLDX), following yesterday’s news that the company and partner Bristol Myers-Squibb initiated a phase 1/2 combination study of varlilumab and Opdivo in advanced refractory solid tumors

The analyst rates the stock an Outperform with a $26 price target, which implies an upside of 19% from current levels.

Peaker observed, “The CLDX/BMY sponsored Phase I study is designed to assess the safety and tolerability of combination varli/Opdivo, followed by Phase II expansion cohorts to evaluate preliminary activity of the combination regimen as determined by overall response rates. The study will enroll patients with advanced NSCLC, melanoma, colorectal, ovarian and head and neck cancers. Patients will receive up to 4 cycles of varlilumab, while there is no restriction on duration of Opdivo treatment.” The analyst added, “This was an anticipated milestone and we believe that any success in this trial presents tremendous upside to Varli and CLDX stock. We maintain our Outperform rating”

Celldex Therapeutics, Inc., a biopharmaceutical company, focuses on the development, manufacture, and commercialization of novel therapeutics for human health care primarily in the United States.