Research update


Immunicum: Need for capital pushes down the share

Top-line data recently presented for the HCC study shows, not surprisingly, the good safety and tolerance of ilixadencel. Positively and in line with what was previously reported from the study, an increase in CD8+ T cells in the blood was noted, indicating the activation of the immune response against the tumor. Data is still limited in scope, but it looks good and provides support for moving forward within the indication.

The new strategy presented in conjunction with the Q2’17 report involves broadening the clinical program into new indications and an intention to evaluate ilixadencel in new combinations. In order to realize this plan, however, a significant capital injection is required. Until funding is in place, we expect the share to continue to be under pressure. The share is also adversely affected by the lack of nearby catalysts.

We have updated our model assumptions, which overall negatively affects the valuation somewhat. Fair value in the base scenario is reduced to 39 (46) kronor. We want to emphasize that a financing solution based on the issue of new shares may have a significant negative effect on our valuation per share.

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