URGENT UPDATE: In a significant market announcement, broker Bell Potter has projected that shares of Immutep Ltd (ASX: IMM) could soar by nearly 90% following an impressive deal with Dr Reddy’s Laboratories. The clinical-stage biopharmaceutical company is set to benefit substantially from this exclusive licensing agreement, which is expected to drive its share price upwards.
The deal, announced earlier today, involves a collaborative effort for the development and commercialization of Immutep’s lead asset, eftilagimod alpha, outside North America, Europe, Japan, and China. Immutep will receive an immediate US$20 million (A$30 million) upfront payment, alongside potential milestone payments totaling up to US$350 million (A$528 million) and double-digit royalties on net sales.
Bell Potter expressed strong optimism about the agreement, stating it offers financial validation from a credible pharmaceutical partner and provides a substantial infusion of cash. The broker noted that the deal also preserves commercial rights for Immutep in the lucrative markets of the US, EU, and Japan, which represent over 90% of the market value.
In response to this development, Bell Potter has revised its price target for Immutep shares from A$0.46 to A$0.60, suggesting a potential upside of almost 90% from the current price of A$0.32. The broker emphasized the significant upside potential for Immutep, particularly if its ongoing Phase 3 lung cancer clinical trial proves successful in a market valued at US$12 billion annually in the United States alone.
This deal is not just a financial boost; it may also attract further interest from other industry players, including potential collaborators like Merck, who may seek rights to the US and EU markets.
Investors are now keenly watching how this partnership unfolds and its potential impact on Immutep’s market position. With clinical trials progressing and a solid financial framework established, the company is poised for exciting developments in the coming months.
As always, prospective investors should conduct thorough research. While Bell Potter maintains a BUY (speculative) recommendation, it’s essential to consider all investment advice carefully.
Stay tuned for more updates on this developing story as the market reacts to this pivotal moment for Immutep Ltd.
