Viralytics Ltd. (AX:VLA)
Additional data presented at ASCO confirm the potential for synergistic combinations of Cavatak with immune checkpoint inhibitor (ICI) drugs to improve the proportion of cancer patients who respond to ICI therapy. Three Phase Ib trials are underway testing Cavatak in combination with Yervoy or Keytruda in melanoma, lung and bladder cancers. Initial data in April showed an impressive 67% response rate in the first six patients in the MITCI study of Cavatak and Yervoy in melanoma. Further updates on MITCI and initial data from the CAPRA trial of Cavatak plus Keytruda could be potential catalysts for the stock in H216. We maintain our valuation of A$272m (A$1.15 per share) ahead of the anticipated newsflow.
Tumour targeting of iv Cavatak attracted Merck (NYSE:MRK) collaboration
Tumour biopsy studies presented at ASCO confirmed successful tumour targeting following iv administration of Cavatak in patients with melanoma, non-small cell lung cancer (NSCLC) and bladder cancer. The immune response to infection of the tumour by Cavatak increased levels of immune cell infiltration and the expression of immune-checkpoint molecules that are targeted by ICI therapies. Viralytics is collaborating with Merck on the recently initiated Phase Ib Keynote 200 (STORM Part B) trial of iv Cavatak in combination with the anti-PD-1 ICI drug Keytruda in advanced bladder and lung cancers.
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