Cantor assumes coverage of Neximmune at OW; PT $4

Cantor Fitzgerald analyst Prakhar Agrawal assumed coverage of Neximmune (NASDAQ:NEXI) with an “overweight” rating and price target of $4. The stock closed at $1.61 on June 29.

Neximmune is developing a novel T-cell therapy platform that uses synthetic nanoparticles to deliver specific instructions to natural T-cells to activate or suppress immune response in cancer or autoimmune diseases, respectively.

The company’s initial focus is in acute myeloid leukemia (AML), after hematopoietic stem cell transplantations, and late-line multiple myeloma, but the company is also expected to move into human papillomavirus-related malignancies this year, Mr. Agrawal said.

“Our overweight thesis is based on our view that an update in the second half of 2022 from NEXI-001 (lead product) in AML is likely to produce a signal of clinical activity, which we think will validate the platform,” he said.

Due to the early-stage nature of the technology, Mr. Agrawal considers Neximmune as a “high-risk play, but the upside potential is also significant because of the broad utility of this modular platform in oncology and, longer term, autoimmune diseases.”