On Wednesday, Elicio Therapeutics (NASDAQ:ELTX) received a Buy rating from Jones Trading, with a set price target of $9.00. The firm's analyst highlighted the potential of Elicio's cancer vaccine candidate, emphasizing its innovative approach to treating pancreatic cancer. The AMP (OTC:AMLTF) platform, which is utilized by the candidate, is designed to deliver neoantigen peptides directly to the lymph nodes, aiming to generate a more effective immune response.
The analyst from Jones Trading noted that the trial for Elicio's vaccine has been strategically crafted, incorporating lessons from past failures in the vaccine field. This careful design is seen as a strength, as the trial aims to target a "hot tumor type" in a post-surgical setting, focusing on patients with biomarker positive status. These patients have microscopic tumor lesions and restored lymphocyte levels, which are believed to enhance the immune response.
The upcoming randomized Phase 2 data, expected to be presented in the first quarter of 2025, is seen as a critical milestone for the program. This data will be derived from a study involving 135 patients. The trial is anticipated to complete enrollment by the end of 2024, which is within a year of its initiation. This swift enrollment is considered to mitigate concerns around the screening failure rate, which can be attributed to the stringent enrollment criteria.
Furthermore, the analyst suggested that the vaccine's efficacy could potentially be boosted if combined with anti-PD-1/PD-L1 agents, a strategy that has shown promise in leading peer vaccine programs. This possibility of enhancement is contingent on the outcomes of the Phase 2 data.
The initiation of coverage with a Buy rating and a $9 price target reflects a positive outlook on the stock, driven by the expected meaningful data release within the next five months and the potential for the vaccine candidate to be applied to additional types of cancer beyond pancreatic cancer. The analyst's assessment indicates a favorable risk/reward balance considering Elicio's current implied valuation.
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