Investorideas.com
Search  Follow Investorideas on Twitter  Investorideas is on Facebook  Investorideas is on Google Plus  Investorideas is on Youtube  Investorideas is on Pinterest  Investorideas is on tumblr  Investorideas is on LinkedIn  Investorideas is on Medium  Investorideas RSS 


Investorideas podcasts on iTunes, Google Play Music and iHeart.com


Biotech with Solid Pipeline and 'Solid Partnership Outlook'

Source: Streetwise Reports

 

November 14, 2017 (Investorideas.com Newswire) Analyst Kevin DeGeeter, with Ladenburg Thalmann, relayed the highlights from his recent meeting with this company's management team about near-term clinical news and pipeline plans.


Molecular Templates (MTEM:NASDAQ) continues to advance its pipeline and, thus, catalysts are anticipated next year, reported DeGeeter in an Oct. 24 research note.

The company is developing the next generation of immunotoxins, called engineered toxin bodies (ETBs), which could be the basis of novel drugs for cancer.

Early next year, Molecular Templates is expected to present its findings on additional patients treated with MT-3724, DeGeeter indicated. These individuals have diffuse large B-cell lymphoma (DLBCL) and will have received the Phase 2 dose of 75 microgram per kilogram. MT-3724, the company's lead product, which targets CD20+ B-cells, is in Phase 1b of development at this potential dose.

Ladenburg expects the data readout in Q1 or Q2/18. "Overall response rate data from up to 10 new patients are expected in H1/18; we view AACR as [the] most likely venue," wrote DeGeeter, referring to the annual meeting of the American Association for Cancer Research, to be held April 14-18, 2018.

Should those data reveal an overall response rate of 20% or better in relapsed/refractory DLBCL, the result "should support potentially pivotal, Phase 2 development in H2/18," DeGeeter stated. "We believe U.S. Food and Drug Administration approval in the relapsed/refractory setting may be possible based on a single 150–200 patient, Phase 2 study with a primary endpoint of overall response rate."

Looking longer term, regarding the use of MT-3724 on patients with this disease, DeGeeter projects "a peak sales potential of $190M," he wrote, "based on [a] $150,000 annual treatment cost and eight months on therapy."

Also, Molecular Templates is expected to advance its pipeline of second-generation ETBs in "1) CD38 (MT-4019) for multiple myeloma, 2) PD-1 for melanoma and 3) HER2 for breast cancer," and in this order, noted DeGeeter. The firm is expected to move all three programs into the clinic in 2018 and file the first investigational new drug application by midyear. This progress would be significant because, as DeGeeter noted, the company's "de-immunized, second-generation scaffold" is "the key to unlocking solid tumor market opportunity for [the] ETB platform."

The life sciences firm now has additional financial and staff support to expand its pipeline. "Following a reverse merger in August 2017, it has roughly doubled its team to 45 employees," DeGeeter said. "The firm expects cash on hand to fund each second-generation program through at least Phase 1 studies."

As for the viability of Molecular Template's ETB platform, it "will likely be attractive to pharmaceutical companies" because of its "novel mechanism of action," DeGeeter wrote. Partnerships with experts in antibody development are likely, the analyst stated, noting these could lead to faster pipeline development and, ultimately, "be an important contributor to both near-term news flow and long-term value creation for the company's shares."

Shares are currently trading at ~$8.89, whereas $10 is Ladenburg Thalmann's price target on the biotech, which is rated a Buy.

Disclosure:

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following company mentioned in this article is a sponsor of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.


BiotechIndustryStocks.com - A Leading Global Investor Website for Biotech Industry Stocks

BiotechIndustryStocks.com - investing ideas in biotechnology stocks, medical technology and life sciences

Like Biotech Stocks? View our Biotech Stocks Directory

Get News Alerts on Biotech Stocks


More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp

Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.


Questrade Democratic Pricing - 1 cent per share, $4.95 min / $9.95 max



Join Investor Ideas Members to access the Renewable Energy stocks directory, water stocks, biotech stocks, defense stocks directories and the Insiders Corner