New BUY: Viralytics - making Keytruda great again[/URL][/P] Biotechnology TP $1.29 BUY
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We are initiating coverage on Viralytics with a BUY rating and a risked price target of $1.29 per share. Viralytics is developing CAVATAK, a pharmaceutical product that could materially increase the market size for cancer immunotherapies. Early trials suggest that CAVATAK can turn the 70% of tumours which are “cold” to “hot”, making them susceptible to treatment. Viralytics is collaborating with Merck in both lung and bladder cancer. Merck is interested in CAVATAK’s potential to increase (we assess double) the sales potential of their blockbuster drug Keytruda. Our analyses explore an asset acquisition by Merck, based on the incremental revenues that might be captured through adding CAVATAK to Keytruda in treating lung cancer. Important new data is expected in 2Q18.
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VLA Price at posting:
67.0¢ Sentiment: Buy Disclosure: Held
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