We initiate coverage on Immutep with an OUTPERFORM recommendation and a target price (“TP”) of A$0.078 per share. Immutep develops therapeutics targeting the Lymphocyte Activation Gene-3 (“LAG-3”) immune checkpoint (“IC”) involved in T cell regulation. IC inhibitors (“ICIs”) targeting CTLA-4 and PD-1 / L1 have revolutionised cancer care owing to their ability to elicit durable responses in advanced cancers. The current focus is on combination therapy to increase response rates. Immutep’s lead asset eftilagimod alpha (IMP321, “efti”) has shown encouraging efficacy in metastatic melanoma and metastatic breast cancer (“mBC”). We forecast launch in 2020E for mBC based on an ongoing Phase IIb trial expected to read out in 2019E and estimate $2.4bn in peak sales across indications, with Immutep expected to sign a licensing deal.
