OncoSec Medical Inc (NASDAQ:ONCS) shares soared on Wednesday, rapidly gaining 60% in value overnight after releasing successful long-term follow-up data from the biotech company’s Phase 2 OMS I-102 combination trial evaluating ImmunoPulse IL-12 and Keytruda in melanoma patients not likely to respond to anti-programmed cell death protein 1 (PD-1) therapy.
Earning a 57% progression-free survival (PFS) rate at 15 months in predicted anti-PD-1 non-responders with 11 out of 11 patients showing duration of response and median PFS had not been attained, H.C. Wainwright analyst Ram Selvaraju believes, “these updated data bode well for the company’s ongoing registration directed PISCES/KEYNOTE-695 Phase 2b trial.”
In reaction to the strength of the data and the initiation of a new Phase 2b PISCES trial, the analyst reiterates a Buy rating on ONCS stock with a $6 price target, which represents a close to 186% increase from current levels. (To watch Selvaraju’s track record, click here)
Selvaraju cheers, “Combined with previously reported data of a best overall response rate (BORR) of 50% (41% complete response [CR] rate), the data set suggests that the combo therapy can prime a coordinated innate and adaptive immune response, which could then lead to improved clinical outcomes in patients not responsive to anti-PD-1 therapy alone, in our view.”
Keep in mind, the analyst continues, “Investors may recall that pIL-12 has received Fast Track designation and Orphan Drug designation from the FDA, which qualifies pIL-12 for expedited FDA review and seven years of market exclusivity if approved. We note that 5,000-10,000 patients on an annual basis may benefit from this combo therapy with improved response rates if pIL-12 is approved and commercialized.”
Ultimately, the success of the Phase 2 combination trial could be an important step forward to gaining a nod from the agency, as Selvaraju contends: “We believe that positive results from the interim analysis may allow the company to apply for Breakthrough Therapy designation for pIL-12 in patients who have failed anti-PD-1 monotherapies.”
Selvaraju is in good bullish company on the Street, as according to TipRanks, out of 3 analysts polled in the last 12 months, all 3 are bullish on OncoSec Medical stock. With a return potential of nearly 162%, the stock’s consensus target price stands at $5.50.