Support for anti-LAG-3 and APC-activator combos

Data presented at the European Society for Medical Oncology (ESMO) congress by third parties has positive implications for Prima Biomed’s LAG3 pipeline, both its in-house IMP321 APC activator and the anti-LAG3 programme out-licensed to Novartis. Prima itself presented encouraging data from ongoing studies of IMP321 in FY17, including a 47% response rate in the run-in phase of its AIPAC breast cancer Phase II. Prima earned a US$1m milestone from Novartis in August, showing that the partnered anti-LAG3 programme is progressing. The company guides that the ~A$6.5m raised from US investors in July extends the funding runway to Q4 CY18. We increase our valuation to A$272m (vs A$252m) or A$0.12/share.