LAG-3 targeted drugs look increasingly likely to take cancer therapy to the next level. Uniquely focussed, Immutep continues to accumulate data supporting the efficacy its LAG-3 agonist Eftilagimod alpha ("Efti") in a variety of cancers and drug combinations. Data from the TACTI-002 study in non-small cell lung cancer ("NSCLC") and positive signals in head and neck suggest the drug may extend the benefits of anti-PD-1 / L1 immune checkpoint inhibitors ("ICI"); without additional toxicity. While the AIPAC Phase IIb in metastatic breast cancer ("mBC") initially fell short of significance in progression-free survival ("PFS"), Efti showed a positive impact on overall survival in sub-groups totalling 60% of mBC patients. With the recently announced $65m fund-raising, IMM should be fully financed for a pivotal Phase 3 and well positioned for a transformative licensing deal. With continuing news flow from its pipeline and the Novartis licensed LAG3 antagonist, we see substantial upside. We reiterate our OUTPERFORM recommendation and increase our TP to AUD 1.35 (from AUD 1.24).
