Maxim Weighs in on OncoSec Medical Inc (ONCS) Ahead of Immune Data Presentation


OncoSec Medical Inc (NASDAQ:ONCS) shares are rising almost 8% ahead of the biotech firm’s immune data presentation tomorrow at the American Association for Cancer Research & Society of Immunotherapy of Cancer Clinical Immuno-Oncology Symposium (ASCO-SITC) in Orlando.

The presentation specifically will shed light on ONCS’s combination of DNA-based IL-12 coupled with Keytruda in late stage melanoma cancer. Dr. Alain Algazi of the University of San Francisco Helen Diller Family Comprehensive Cancer Center will lead the discussion.

As far as Maxim analyst Jason McCarthy can see, shareholders have reasons to look forward to the data read-out, which stands to be promising. As such, the analyst reiterates a Buy rating on shares of ONCS with a $5 price target, which represents a 231% increase from where the stock is currently trading.

McCarthy opines, “Oncosec’s work has identified a specific immune profile and threshold for T cells expressing high levels of PD1 and CTLA4 that must be met to be classified as a checkpoint responder or non-responder. Below this threshold, <22%, patients are likely non-responders. In the predicted non-responder population, treatment with pIL-12 and Keytruda resulted in an overall response rate (ORR) of 40% (6/15), including 4 complete responses and 2 partial responses. The ORR in the non-responder population would be expected to be between 0% and 10%.”

Overall, “The data so far, while in a small number of patients, represents early proof of concept, in our view. More data is expected in mid-2017, likely at ASCO (American Society of Clinical Oncology). Oncosec is also in discussion with regulators regarding the design of a registration study. We expect that the company will provide updates as the path towards registration becomes more clear,” McCarthy surmises.

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, Jason McCarthy is ranked #4,420 out of 4,496 analysts. McCarthy has a 37% success rate and loses 13.9% in his annual returns. When suggesting ONCS, McCarthy forfeits 18.9% in average profits on the stock.

Additionally, Ram Selvaraju of H.C. Wainwright rates a Buy on ONCS with a $6 price target, which represents a 300% increase from where the shares last closed, and Mark Breidenbach of Roth Capital rates a Buy without listing a price target.