BioTuesdays

Mackie starts Medicenna Therapeutics at speculative buy; PT $1.50

Mackie Research launched coverage of Medicenna Therapeutics (TSX:MDNA) with a “speculative buy” rating and a 12-month target price of $1.50. The stock closed at 68 cents on April 29.

Medicenna’s MDNA55 is a first-in-class IL-4/exotoxin A fusion protein in development to treat recurrent glioblastoma (rGBM) – a rare type of aggressive brain cancer. MDNA55 is administered directly to the brain tumor site via convection-enhanced delivery, which enables it to bypass the blood-brain barrier.

Analyst Andre Uddin writes that in previous studies, 25 rGBM patients receiving MDNA55 achieved a compelling objective response rate (ORR) of 56% – far better than the average 4% to 6% ORR in rGBM trials with other medicines. MDNA55 was also safe and well tolerated.

MDNA55 is currently in a single-arm Phase 2b study. Mr. Uddin said preliminary results showed that 27 subjects on MDNA55 had a median survival of 11.8 months – longer than 5.6-to-eight months by other rGBM drugs. Interim top-line results of this trial are expected in June 2019.

“Late-stage orphan indications are highly being sought after by large biotech and Big Pharma,” he said.

Mr. Uddin said Medicenna’s share price has been under pressure. “With the Phase 2 interim top-line results expected in June, we believe high risk tolerant investors should take advantage of the buying opportunity,” he added.

Subscribe

Sign up to our weekly BioTuesdays newsletter.

Subscribe

Sign up to our weekly BioTuesdays newsletter.