H.C. Wainwright Reiterates Buy On OncoSec Following FY4Q14 Results


In a research report published today, H.C. Wainwright analyst Reni Benjamin reiterated a Buy rating on OncoSec Medical (OTC:ONCS) with a $2 price target, following the company’s release of its FY4Q14 financial results.

Benjamin wrote, “OncoSec reported a net loss of ($3.5) MM, or ($0.02) per share for the fourth quarter ending on July 31, 2014, in line with our expectations. Going forward, we expect the burn rate to increase to approximately $3.8 MM per quarter as trial enrollment grows and a new combination study evaluating ImmunoPulse with checkpoint inhibitors is potentially initiated. Based on our models and guidance from management, we expect the current cash position to sustain operations for at least the next two years.”

The analyst continued, “OncoSec’s ImmunoPulse platform utilizes electroporation to efficiently transfect plasmid DNA encoding the pro-inflammatory cytokine, IL-12, into patients with injectable tumors including melanoma, Merkel cell, and cutaneous T-cell lymphoma. With the approval of Bristol- Myers Squibb’s (BMY; not rated) Opdivo (nivolumab) in Japan and Merck’s (MRK; not rated) Keytruda (MK-3475) in the US, the age of improving response rates of checkpoint inhibitors has begun. With ImmunoPulse, OncoSec aims to change the tumor microenvironment by locally expressing IL-12 in tumors, which could systemically increase the potency of checkpoint modulators. With multiple upcoming presentations, the potential for a partnership, and a strong cash position of $37.9 MM, we believe OncoSec represents an undervalued player with significant upside for the long-term investor.”

 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 -9.5% and a 19.6% success rate. Benjamin has a -24.7% average return when recommending ONCS, and is ranked #3262 out of 3352 analysts.

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