Looking for a biotech multi-bagger? This could be the one.

This stock could re-rate significantly if its cancer clinical trials deliver as hoped.

Key points
  • Immutep has announced a new breast cancer research collaboration. 
  • The company is trialling its efti compound for treatment of various cancers.
  • Wilsons Advisory says the stock could re-rate strongly.

Biotechnology stocks can be high-risk but also high-reward. The key is latching on to one with a promising product pipeline and the ability to bring it to market.

Wilsons Advisory's healthcare analysts believe Immutep Ltd (ASX: IMM) may be one such stock.

Immutep bills itself as a "late stage" biotech company that is developing novel immunotherapies for cancer and autoimmune diseases, as it explains on its website.

The company is a pioneer in the understanding and advancement of therapeutics related to lymphocyte activation gene-3 (LAG-3), a cell surface molecule that plays a vital role in regulating the immune system. Immutep's diversified product portfolio harnesses LAG-3's ability to stimulate the immune response to fight cancer or modulate it to combat autoimmune diseases.

Scientists in a laboratory look at a computer screen with anticipation on their faces.

Image source: Getty Images

New research collaboration to kick off

Immutep announced earlier this week that it had struck a research collaboration agreement with the George Washington University Cancer Centre to evaluate one of its compounds, neoadjuvant efti.

A Phase II trial will evaluate the compound in up to 50 patients, treating them for early-stage breast cancer initially with the compound alone and later in combination with chemotherapy.

Immutep Chief Executive Officer Marc Voigt said in a statement to the ASX that the trial would "help us cost-efficiently expand our clinical pipeline for neoadjuvant efti in areas of high unmet need".

Our belief is this novel immune system activator can play a meaningful role in metastatic settings and in the ongoing expansion of immunotherapy into neoadjuvant settings to fight cancer.  

Wilsons analysts said they maintained their overweight rating on Immutep and had a risked price target of $1.20 per share, well above the current price of 25 cents.

Immutep continues to impress with pipeline optionality and the potential of efti in earlier lines of treatment. The announcement of this investigator-initiated trial is the second of its kind, demonstrating both the desire for and the opportunity of efti to move into earlier lines of treatment and into the neoadjuvant setting.

Trial results to be released soon

Wilsons also noted that data from the first trial of efti in the neoadjuvant setting would be presented at an upcoming conference in mid-November.

As well as being trialled for its efficacy against breast cancer, Immutep said efti was also being evaluated for a variety of solid tumours, including non-small cell lung cancer and head and neck squamous cell carcinoma.

Immutep's market capitalisation is currently about $370 million.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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