FBR analyst Vernon Bernardino weighed in on Immune Pharmaceuticals Inc (NASDAQ:IMNP), after the company announced its plan to submit the final protocol for an international pivotal Phase III trial of Ceplene in combination with low-dose IL-2 for the remission maintenance of acute myeloid leukemia (AML) patients.

Bernardino wrote, “The decision was based on the FDA’s latest guidance received by Immune regarding Ceplene’s future regulatory pathway in the U.S. The new Phase III trial design, which Immune intends to submit in early 2017, will measure overall survival (OS) as the primary endpoint. Importantly, leukemia-free survival, which gained Ceplene approval in the EU and Israel, would be a key secondary endpoint that could provide clinical evidence and post-market data to support potential benefits in other AML patients. Based on its distinct mechanism of action, we continue to believe Ceplene has the potential to be synergistic if used to complement induction therapy.”

“In a poster presentation highlighting results of the completed Phase III trial at AACR 2016, the Ceplene plus IL-2 (Proleukin) combination led to significant transition of cytotoxic T-cells to effector T-cells, suggesting the combination elicits an immune response. We think the evidence shows Ceplene is synergistic with IL-2, which helps to activate and promote T-cells and NK cells proliferation, further activating the immune system. Overall, we think preventing the inactivation and apoptosis of T-cells and NK cells with Ceplene plus IL-2 has demonstrated the potential to benefit AML patients who have been treated with an induction therapy,” the analyst continued.

Bernardino reiterated an Outperform rating on shares of Immune Pharmaceuticals, with a price target of $3.00, which implies a huge upside of 1349% from current levels.

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vernon Bernardino has a yearly average loss of 22.9% and a 17.9% success rate. Bernardino has a 53.8% average loss when recommending IMNP, and is ranked #4046 out of 4178 analysts.

As of this writing, all the 3 analysts polled by TipRanks rate IMNP stock a Buy. With a return potential of 1712%, the stock’s consensus target price stands at $3.75.