Baird, the investment bank, has initiated coverage on Immutep Ltd (ASX:IMM) (IMMP), a clinical-stage biotechnology company, with an "outperform" rating and a price target of $7—a significant premium to the current share price of $2.11.
Immutep is at the forefront of developing therapies related to LAG-3, a protein involved in regulating the immune system.
The company's lead candidate, eftilagimod alpha (referred to as efti), is being developed for treating specific types of cancers, including non-small cell lung cancer (NSCLC) and head and neck squamous cell cancer (HNSCC).
Call it efti
Notably, efti has received fast-track designation from the US Food & Drug Administration for these applications, indicating its potential importance and the FDA's interest in its rapid development.
Baird's optimism stems from efti's unique approach compared to other treatments, such as Bristol-Myers Squibb (NYSE:BMY)'s relatlimab.
While relatlimab focuses on stimulating T-cells, efti aims to boost the immune response by targeting different cells, potentially making it a more effective partner for certain existing cancer treatments.
LAG up?
Furthermore, Immutep's strong foundation in LAG-3 research is evident, with its chief scientific officer, Frédéric Triebel, being credited with discovering the LAG-3 gene and its medical applications.
With a robust cash position and promising clinical data, Immutep is poised for potential success, especially as it awaits key results from its TACTI-003 trial expected by the end of 2023, Baird said.