OSE Immunotherapeutics - Maintaining momentum after an active H123

OSE Immunotherapeutics (OSE) has announced its H123 results, providing an operational and a financial update. Highlights from the period included positive recommendations for a confirmatory pivotal Phase III trial for lead asset Tedopi in non-small cell lung cancer (NSCLC), which is on track to commence in 2024. OSE also claimed full rights to its most advanced immuno-inflammation asset, Lusvertikimab (previously being developed in partnership with Servier). Post period, the company reported a positive safety review for Lusvertikimab from the ongoing Phase II trial in ulcerative colitis (UC). Patient enrolment is expected to be completed in Q423, with top-line results in the next few months. OSE also recently announced a €200,000 grant from the French government and Region Pays de la Loire to weave RNA therapeutics into its preclinical R&D engine, representing a new opportunity for the company. At end-June 2023, OSE had a pro-forma gross cash position of €33.6m, which we estimate will provide a runway through to Q424 (H123 cash burn of €11.7m). We value OSE at €311.3m or €14.4 per share, with Tedopi as the primary contributor to this valuation.