OSE Immunotherapeutics - Strong momentum in deal flow

OSE Immunotherapeutic’s FY24 has started off with a series of major wins, significantly bolstering the company’s clinical pipeline and liquidity. We believe the partnership with AbbVie (announced in February) for OSE-230, targeting chronic inflammation, the €8.4m public funding for Tedopi secured in April and the recent expansion of its R&D agreement with Boehringer Ingelheim (BI) are all positive endorsements of OSE’s discovery platform. Moreover, we expect the c €91m in non-dilutive inflows from these announced deals to extend OSE’s cash runway into 2027 (previously 2026), an important consideration given the still tight biotech funding environment. While some optimism from these announcements is already reflected in the share price (up 88% ytd), our revised valuation for OSE (€19/share) indicates potential for further upside with the upcoming milestones, including the Phase III initiation for lead asset Tedopi and Phase II readouts for Lusvertikimab, both anticipated imminently.