Biotech Replimune Group, Inc. (NASDAQ: REPL), which conducts research and cancer treatment studies using oncolytic viruses, picked up a sell-side bull Tuesday.
BMO Capital Markets analyst Do Kim initiated coverage of Replimune Group with an Outperform rating and $31 price target.
Replimune has developed RP1, a treatment for large injected and uninjected tumors using oncolytic viruses. BMO considers the company to be low-risk because of the treatment’s similarity to T-Vec, the only FDA-approved virus of a similar nature, Kim said in the initiation note. (See the analyst's track record here.)
“We believe RP1 can deliver on heightened expectations for oncolytic viruses, with the advent of immunotherapy, which should expose tumors to greater systemic immune activity," the analyst said.
With a stronger potency compared to T-Vec, RP1 should achieve greater benefits than those revealed in T-Vec studies, Kim said.
The study of RP1 will additionally evaluate bladder cancer, nonmelanoma skin cancer and MSI-H cancers, Kim said. Pending clinical data, the treatment could be as effective in these tumor types, Kim said, adding that the MSI-H market opportunity could replicate that of melanoma.
Since the treatment is versatile, Replimune is able to market to a variety of patients, the analyst said.
“An important characteristic of oncolytic viruses is genetic engineering, which enables tumor selective targeting and expression of biologic therapies, including antibodies, ligands and cytokines."
Replimune shares were down 0.18 percent at $17.07 at the time of publication Tuesday.
The Week Ahead In Biotech: Conferences, PDUFA Dates, Earnings And IPOs
Regeneron To Make 0M bluebird bio Investment In Cancer Research Collaboration
Latest Ratings for REPL
|Aug 2018||BMO Capital||Initiates Coverage On||Outperform|
|Aug 2018||JP Morgan||Initiates Coverage On||Overweight|
View More Analyst Ratings for REPL
View the Latest Analyst Ratings
See more from Benzinga
- Truett-Hurst Shares Jump On M Sale Of Wine Business
- Barclays, Macquarie Upgrade Nielsen Holdings On Elliott Management Stake, Likelihood Of Sale
- Home Depot's Q2 Beat Comes Amid Home Sales Decline, Rise In Median Sale Price
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.