Immutep Ltd (ASX: IMM) shares ended the week on a disappointing note.
The small cap ASX biotechnology share fell 3% to finish the session at 33 cents.
But its shares may not be trading at those levels for long if one leading broker is to be believed.
What is being said about this small cap ASX share?
Analysts at Bell Potter have been looking over a recent data update and were pleased with what they saw. Commenting on the INSIGHT-003 trial, the broker said:
IMM have provided a data update from the Phase 1 trial called INSIGHT-003 evaluating Efti in combination with Keytruda + chemo in first-line non-small cell lung cancer (1L NSCLC) patients. We consider the data to be a strong update and provides further support heading into the pivotal Phase 3 trial starting in the next few months using the same treatment regimen in a similar patient population.
Bell Potter highlights that the median survival data was strong and was a key highlight from the release. It adds:
A key highlight was the 32.9 months median survival for the first 21 patients, roughly 11 months longer than the 22.0 months observed for a similar patient group in the historical Keytruda + chemo Phase 3 trial (KEYNOTE-189). Additionally, the first 21 subjects showed favourable outcomes relative to the historical phase 3 trial in terms of (1) median progression-free survival (mPFS) of 12.7m vs. 9.0 months; and (2) 24- month survival rate of 81% vs 46%.
Big potential returns
According to the note, the broker has held firm with its speculative buy rating and 70 cents price target on the small cap ASX share.
This implies massive potential upside of 111% for investors over the next 12 months.
To put that into context, a $500 investment would be worth approximately $1,050 by this time next year if Bell Potter is on the money with its recommendation.
The broker acknowledges that there's still a lot of work to be done, but that the early signs are positive. It concludes:
While INSIGHT-003 is a relatively small trial lacking a head-to-head control arm, the data so far looks promising and provides added confidence in the upcoming Phase 3 trial (n=750) utilising the same treatment regimen. First-line NSCLC is one of the most lucrative oncology indications, and while the Ph3 will be a multi-year trial, there are futility and interim readout events along the way to maintain interest.
There are no changes to our forecasts after this data update. We maintain our BUY (spec.) recommendation and $0.70 valuation. Upcoming readouts in the next 12 months include: (1) further head & neck Ph2 data (Cohort B update on 12-Dec-2024, Cohort A survival data 2025); (2) Ph1 results with autoimmune drug candidate in healthy volunteers; and (3) Ph2 breast cancer results using the 90mg dose (having potential relevance for the Ph3 dose in 1L NSCLC).
