Health Check: Immutep shares fizz on $530m cancer drug partnering deal
Cancer drug developer Immutep has landed a major offshore commercialisation deal worth $30 million upfront and as much as $530 million in milestone payments.
Immutep has struck a global deal to commercialise its novel immuno-oncology asset
Broker Morgans values Epiminder shares at $2.33 – almost twice their current value
Rhythm gets into the US groove with genetic test deal
Shares in immuno-oncology drug developer Immutep (ASX:IMM) this morning soared up to 33% on news of a commercialisation deal that delivers US$20 million ($30m) upfront and up to $530 million of total payments.
Under the deal, the Hyderabad, India based Dr. Reddy’s Laboratories gets exclusive commercial dibs on Immutep’s eftilagimod alfa (efti).
This is for all regions outside of North America, Europe, Japan, and greater China. So given these chunky exclusions, it’s a meaty deal – albeit heavily back ended.
Dr Reddy's upfront ‘readies’ aside – excuse the pun – the greater sum includes potential regulatory development and commercial milestones.
Immutep also is in line for double-digit royalties on commercial sales. It will continue to hold the global manufacturing rights to efti across all markets and will supply Dr. Reddy’s.
Efti uses a novel mechanism to fight cancer. The compound currently is under evaluation in Tacti-004, a registrational phase III trial for the first-line therapy of advanced or metastatic non-small cell lung cancer.
This is in combo with the checkpoint inhibitor Keytruda.
Immutep also is investigating efti in other indications, including head and neck and breast cancers and and soft tissue sarcomas.
Maintain the faith in Epiminder, broker urges
Broker Morgans has ascribed a $2.33 a share ‘price target’ to Epiminder (ASX:EPI), which listed last Monday after raising $125 million at $1.50 a share.
With the stock now trading around $1.19, that implies considerable upside.
Epiminder is all about its sub-scalp monitoring device, Minder.
Unlike other current electroencephalogram (EEG) tests, Minder offers longer-term, higher-fidelity monitoring for more accurate diagnosis.
Morgans says: “By materially improving diagnostic yield, seizure characterisation and treatment decision-making, Epiminder targets a clear gap in current practice and a population with high clinical and economic burden.”
The US Food & Drug Administration has cleared Minder and the company targets a phased US launch in the second half of 2026.
Initially, Epiminder will focus on drug-resistant epilepsy patients with inconclusive EEG results – a US$1.1-billion-a-year market opportunity covering 45,000 patients.
Firstly, Epiminder needs to complete a demonstration study, called Detect and develop its second-generation iteration of the device.
Morgans forecasts current year revenue of $1.4 million and a loss of $41 million, with 2026-27 turnover of $2.7 million and a $38.6 million deficit.
If all goes well, the company should generate “reasonable” revenue by 2028-29.
Morgans was a joint lead manager to the float.
In the Rhythm with US deal …
Rhythm Biosciences (ASX:RHY) has entered a partnership with US company Catch Bio to provide its predictive genetic risk tests to the US cancer prevention platform.
The deal involves Rhythm’s assay Genetype, acquired from the administrators of Genetic Technologies last year.
The idea is that Genetype will enhance Catch Bio’s platform by enabling polygenic assessments across up to six cancers: breast, colorectal, prostate, melanoma, ovarian and pancreatic.
Genetype integrates an individual’s genetic profile, clinical factors and family history to generate personalised cancer risk insights.
It can also assess non-cancer maladies such as cardiovascular disease and diabetes.
Catch Bio’s AI-driven risk model incorporates more than 500 lifestyle and environmental risk factors.
Rhythm says integrating Genetype with the Catch Bio platform “enhances the precision of risk assessment”.
It also “delivers a more comprehensive risk profile to users looking to take proactive steps in cancer prevention”.
While the announcement does not mention any financials, Rhythm says the tie-up is a “meaningful commercial milestone as expands its footprint in a key global market".
Rhythm, meanwhile, is developing it mainstay asset Colostat, a blood-based bowel cancer assay.
… while BCAL expands its local testing suite
While Rhythm takes its tests to the US, BCAL Diagnostics (ASX:BDX) is doing the opposite by introducing US pancreatic and ovarian tests locally.
Called Avantect, these blood-based assays are owned by the California based Clearnote Health.
In September BCAL acquired the Australian rights for these tests, which have “demonstrated strong predictive value in early-stage cancer patients when protein marker-based tests regularly fail".
The assays will be available from mid-January, via partner Sonic Healthcare's (ASX:SHL) Australian pathology network.
“For the first time, Australians will be able to access vital early detection blood tests across the country,” BCAL CEO Shane Ryan says.
“Pancreatic and ovarian cancers are considered ‘silent killers’ because they are often detected too late.
"Through early detection, physicians have a wider array of treatment options that can lead to profound increases in survival rates.”
New funding unleashes Race’s Harness trial
Race Oncology (ASX:RAC) has raised $3.22 million in a private placement to fund its phase Ia/b lung cancer trial, dubbed Harness-1.
Existing sophisticated investors took up the stock at $2.83, a 6% premium to last Friday’s closing price.
The trial also will be funded from the early conversion of ‘piggyback’ options, which expire in May next year.
Given they have a $1.25 a share exercise price, there should be no shortage of takers joining CEO Dr Daniel Tillett in converting the oppies.
The board expects the Harness trial, which has ethics approval, to start enrolling imminently.
The trial tests Race’s small molecule candidate RC-220, in combination with the standard targeted therapy Tagrisso (osimertinib).
Race has a more advanced phase III program for acute myeloid leukemia and a phase Ia/b effort for cardio protection.
That means protecting the heart against the effects of chemotherapy.
Originally published as Health Check: Immutep shares fizz on $530m cancer drug partnering deal
