Another Partnership in the Books, Focus Now on ASCO for Celldex (CLDX) - Roth

Roth Capital affirms Celldex Therapeutics (Nasdaq: CLDX) at Buy and Focus Pick following news that it and Oncothyreon agreed to collaborate on a combined clinical trial of ONT-10 and varlilumab.

Analyst Joseph Pantginis commented, Off of the recent announcement of a varli combination with BMY's nivolumab, we are encouraged by the early progress on the collaboration front. We believe that ultimately these collaborations could lead to a lucrative partnership for Celldex and varli. Combination with varli and ONT-10 should be synergistic based on the underlying mechanisms of action. Merck KGaA previously ran a Phase III NSCLC study with a similar vaccine to ONT-10 called Stimuvax, which missed its primary endpoint, however showed that depending on whether chemotherapy was given concurrently or sequentially made a major difference in clinical outcomes. Merck is now going to run a second Phase III using this knowledge. ONT-10 (discussed below) represents a "next-gen" version of Stimuvax with both induced antibody responses, but importantly, significantly increased T-cell responses. Regarding varli, we expect important updates this weekend at ASCO from both Phase I studies in solid and hematological tumors. We believe positive incremental data will be presented with longer follow up times and increased patients numbers.

For an analyst ratings summary and ratings history on Celldex Therapeutics click here. For more ratings news on Celldex Therapeutics click here.

Celldex closed at $14.42 yesterday.

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