Jefferies Upgrades NewLink Genetics (NLNK) to Buy

(Updated - September 8, 2017 2:56 AM EDT)

(updated to expand analyst comment)

Jefferies upgraded NewLink Genetics (NASDAQ: NLNK) from Hold to Buy with a price target of $26.00 (from $7.00).

Analyst Biren Amin believes the company's Indoximod combo compares to Epacadostate. The analyst sees additional upside remaining citing indoximed's potential as a second IDO-targeted agent in melanoma and therefore upgrades the stock.

Amin highlighted ORR of 61% and a CR rate of 20% and, for the first time, NLNK reported median PFS at 12.9 months.

On the Indox Combo comparing to Epacadostat Combo in Melanoma, he highlighted: "On overall responses, indox combo performs slightly better than epacado combo with ORR of 61% vs 56% (n=56, ECHO-202) and with CR of 20% vs 13% (n=56, ECHO-202), based on the comparison between all comer patients in two studies," Amin highlights "On PFS, indox combo appears in line with epacado combo with mPFS presented at 12.9 m vs 12.4 m (n=56, ECHO-202). Further, the baseline characteristics of the updated data showed a slightly healthier melanoma patient group in indox combo compared to epacado combo ECHO-202 study, however, even adjusting for these suggests the data appear at least comparable to ECHO-202."

For an analyst ratings summary and ratings history on NewLink Genetics click here. For more ratings news on NewLink Genetics click here.

Shares of NewLink Genetics closed at $13.60 yesterday.

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