Tuesday was a good day for investors of Heat Biologics (HTBX). Shares blasted off by 50%, after the biotech company announced positive interim data for its lung cancer treatment.
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Specifically, in the Phase 2 trial of HS-110, in combination with Bristol-Myers Squibb’s OPDIVO (nivolumab) in advanced non-small cell lung cancer (NSCLC), there was a significant improvement to survival rates when the two treatments were put to work together.
HS-110 is an allogeneic cell-based therapy intended to strengthen the immune system to target cancer cells. Opdivo, is a checkpoint inhibitor.
When combined, there was a median overall survival of 24.6 months, compared to the median overall survival of 12.2 months when just using Opdivo. Additionally, the combination resulted in a one-year survival rate of 61.7% vs. the 50.7% rate exhibited by Opdivo on its own.
The data also showed that NSCLC patients could still benefit from HS-110, even though the disease had progressed following checkpoint inhibitor therapy.
B. Riley analyst Mayank Mamtani says the data confirms HS-110’s standing as a “partner of choice” in the treatment of NSCLC.
“We believe the data… serves as further validation for HS-110’s positioning in a relatively busy advanced NSCLC landscape and provides supportive evidence to the ongoing engagement with FDA on clarifying the path to registration in a pivotal Ph. III study,” the 5-star analyst noted. “HS-110 update also serves to de-risk and showcase the broad utility of the gp96 platform, which is also behind the design of HTBX’s COVID-19 vaccine candidate.”
HTBX recently announced the completion of its gp96-based Covid-19 vaccine cell line. The company is developing the vaccine, called ZVX-60, for use as a standalone jab or to be used with other vaccine candidates to strengthen prophylactic protection. The company plans to initiate a Phase 1 study by mid-2021.
If you think you might have missed the boat following Tuesday’s surge, then Mamtani thinks otherwise. The analyst has a $20 price target for the shares, implying further upside of 80% from current levels. Unsurprisingly, Mamtani’s rating stays a Buy. (To watch Mamtani’s track record, click here)
The B. Riley analyst is not alone in predicting a bright future for HTBX. 4 other analysts recently reviewed the company’s prospects, and all reached the same conclusion – Buy. The Strong Buy consensus rating is backed by a bullish average price target; At $26.25, there’s potential for a hefty 138% upside potential in the year ahead. (See HTBX stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
