Prima Biomed (PBMD) PT Lowered to $7 at Maxim Group, Buy Maintained as LAG-3 + Keytruda Moves to Higher Dose

Maxim Group analyst Jason McCarthy lowered his price target on Prima Biomed (NASDAQ: PBMD) to $7.00 (from $16.67) but maintained a Buy rating after the company announced that the Data and Safety Monitoring Board (DSMB) has determined that the 1mg dose of IMP321 (soluble LAG-3) combined with Keytruda in the phase I melanoma study (TACTI-mel) is safe and well tolerated. The study has been cleared to continue dose escalation, and will proceed to the next dose level of 6mg.

McCarthy highlighted:

• Patients in the study have unresectable or metastatic melanoma that have poor responses or no responses to Keytruda. IMP-321, as a soluble LAG-3 fragment, drives the immune system to generate anti-tumor immune responses for Keytruda to "take the brakes off." More data, including preliminary efficacy, is expected to be updated throughout 2017. We also expect to continue to see more data for combination approaches from the immune oncology space as a whole in 2017 (see below).
• Adjusting for new ADR ratio; reducing price target. Announced on December 18, 2016, and effective as of December 28, 2016, (U.S. EST); the ratio was adjusted to 1 ADS = 100 ordinary shares from 1 ADS = 30 ordinary shares (the new CUSIP is 74154B302). Our 12-month price target is now $7.00, reduced from a post-split target of $16.67 (the pre-split target was $5.00). A combination of adjusted timeliness, expected data points, and risk have resulted in a lower post-split price target.

For an analyst ratings summary and ratings history on Prima Biomed click here. For more ratings news on Prima Biomed click here.

Shares of Prima Biomed closed at $2.50 yesterday.

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