Agenus: Phase 3 Shingles Vaccine Success Raises The Roof For QS-21 Adjuvant, Says H.C. Wainwright


In a research report published Friday, H.C. Wainwright analyst Reni Benjamin reiterated a Buy rating on Agenus (NASDAQ:AGEN) with a $6 price target, as the company and partner GlaxoSmithKline announced positive Phase 3 data from the HZ/su shingles vaccine program.

Benjamin noted, “We view these results as excellent news for investors, as the shingles vaccine program could potentially yield worldwide revenues surpassing $750 MM, based on the performance of Merck’s approved zoster vaccine (Zostavax). We believe this could translate to a steady stream of royalty revenue for Agenus, potentially peaking between $10-20 MM per year if HZ/su is approved.”

Furthermore the analyst wrote, “We remind investors that the shingles vaccine is just one of 17 ongoing partnered programs involving QS-21, and that HZ/su is the second vaccine to demonstrate efficacy in a randomized Phase 3 trial. In our opinion, potential royalties from multiple QS-21 programs could ultimately offset a significant portion of costs associated with development of Agenus’ immuno-oncology pipeline, which currently includes eight fully human antibodies against a variety of checkpoint molecules.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Reni Benjamin has a total average return of -2.5% and a 34.6% success rate. Benjamin has a 10.1% average return when recommending AGEN, and is ranked #2997 out of 3420 analysts.

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