Immunome: An Oncology Powerhouse In The Making

seekingalpha04-03

IMNM has acquired an anti-ROR1 antibody-drug conjugate, and ADC platform technology, from Zentalis Pharmaceuticals.IMNM has also acquired AL102 and AL101 from Ayala Pharmaceuticals. AL102 is already ...

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AL102 is already ...</p>\n\n<a href=\"https://seekingalpha.com/article/4681782-immunome-an-oncology-powerhouse-in-the-making\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Immunome: An Oncology Powerhouse In The Making</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nImmunome: An Oncology Powerhouse In The Making\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-03 02:07 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4681782-immunome-an-oncology-powerhouse-in-the-making><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>IMNM has acquired an anti-ROR1 antibody-drug conjugate, and ADC platform technology, from Zentalis Pharmaceuticals.IMNM has also acquired AL102 and AL101 from Ayala Pharmaceuticals. AL102 is already ...</p>\n\n<a href=\"https://seekingalpha.com/article/4681782-immunome-an-oncology-powerhouse-in-the-making\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0795875086.SGD","symbol_name":"JPMorgan Investment Funds - Global Income A (div) SGD","start_time":0,"source_url":"https://seekingalpha.com/article/4681782-immunome-an-oncology-powerhouse-in-the-making","article_id":"2424797078","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1462145895/image_1462145895.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2424797078","pubTimestamp":1712081266,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"IMNM has acquired an anti-ROR1 antibody-drug conjugate, and ADC platform technology, from Zentalis Pharmaceuticals.IMNM has also acquired AL102 and AL101 from Ayala Pharmaceuticals. AL102 is already i","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0795875086.SGD":"JPMorgan Investment Funds - Global Income A (div) SGD","LU1430594728.SGD":"Eastspring Investments - Global Low Volatility Equity AS SGD","ADC.AU":"ACDC Metals Ltd","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU0949170772.SGD":"Blackrock Global Equity Income A6 SGD-H","BK4581":"高盛持仓","LU0158827948.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"A\" (USD) INC","LU0861579265.USD":"联博低波幅策略股票基金A","ZNTL":"Zentalis Pharmaceuticals, LLC","ADXS":"Ayala Pharmaceuticals, Inc.","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU1291159041.SGD":"CPR Invest - Global Silver Age A2 Acc SGD-H","LU1244550577.SGD":"FTIF - Franklin Global Multi-Asset Income A (Mdis) SGD-H1","LU1718418525.SGD":"JPMorgan Investment Funds - Global Select Equity A (acc) SGD","LU0738911758.USD":"Blackrock Global Equity Income A6 USD","SG9999001440.SGD":"United Global Dividend Equity Fund A SGD Dist","SG9999014542.SGD":"United Income Focus Trust Acc SGD","LU1244550494.USD":"FRANKLIN GLOBAL MULTI-ASSET INCOME \"A\" (USDHEDGED) ACC","LU1585245621.USD":"EASTSPRING INV GLOBAL LOW VOLATILITY EQUITY FUND \"A\" (USD) ACC B","ADC":"艾格里房产","LU0965509101.SGD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"A\" (SGDHDG) ACC","LU0029864427.USD":"TEMPLETON GLOBAL \"A\" (USD) INC","LU1496350502.SGD":"FRANKLIN DIVERSIFIED DYNAMIC \"A\" (SGDHDG) ACC","ABBV":"艾伯维公司","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","SG9999013999.USD":"UOB UNITED GLOBAL HEALTHCARE FUND (USDHDG) INC","LU1974910355.USD":"Allianz Thematica Cl AMg DIS USD","DAR":"美国达尔令国际","LU0238689110.USD":"贝莱德环球动力股票基金","BK4189":"农产品","IMNM":"Immunome Inc.","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0912757837.SGD":"JPMorgan Investment Funds - Global Income A (mth) SGD-H","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","BK4534":"瑞士信贷持仓","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","MRK":"默沙东","LU2106854487.HKD":"ALLIANZ THEMATICA \"AMG\" (HKD) INC","BK4080":"零售业房地产投资信托","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU0266013472.USD":"AXA WF - Framlington Longevity Economy A Cap USD","LU0289739699.SGD":"AB INTERNATIONAL HEALTH CARE PORTFOLIO \"A\" (SGD) ACC","IND.AU":"Industrial Minerals Ltd","IE00B2B36J28.USD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I1\" (USD) INC","SG9999002224.SGD":"Allianz Global High Payout SGD","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","SWTX":"SpringWorks Therapeutics, Inc.","LU0661504455.SGD":"Blackrock Global Equity Income A5 SGD-H","LU0965509010.AUD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (AUDHDG) INC"},"translate_title":"免疫组：正在形成的肿瘤学发电站","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ADC":1,"ZNTL":1,"SWTX":1,"MRK":1,"IND.AU":1,"IMNM":1,"DAR":1,"ABBV":1,"ADC.AU":1,"ADXS":1},"content_text":"IMNM has acquired an anti-ROR1 antibody-drug conjugate, and ADC platform technology, from Zentalis Pharmaceuticals.IMNM has also acquired AL102 and AL101 from Ayala Pharmaceuticals. AL102 is already in a phase 3 study, with results expected in Q1'25.IMNM is also looking to acquire some antibody-related assets and materials from Atreca, subject to a stockholder vote.IMNM expects its cash to last into at least 2026.   EschCollectionI wrote about Immunome (NASDAQ:IMNM) twice in 2023, including most recently in September when the company was merging with Morphimmune, and bringing on Clay Siegall as CEO. Siegall's appointment, the pipeline and the cash had me rating the company a strong buy. Since the merger, IMNM has engaged in several business development transactions to further build its pipeline and the technology available to it. This article takes a look at those developments, and why I now rate IMNM a buy rather than a strong buy. Figure 1: Highlights of several business development transactions by IMNM. Note the AL102/AL101 acquisition has now been completed. (IMNM Corporate Presentation, February 2024.)ZPC-21 and ZNTL platform acquisition In January, IMNM announced it had licensed ZPC-21, a ROR1 antibody-drug conjugate (ADC), from Zentalis Pharmaceuticals (ZNTL), along with ZNTL's ADC platform technology. To get a hold of those assets, IMNM paid ZNTL $35M upfront in cash and IMNM stock, and ZNTL is eligible to receive up to a further $275M in milestones plus royalties. The Anti-ROR1 ADC space isn't devoid of competition, so IMNM must see something in ZPC-21 (now called IM-1021) to pick up something that right now, is behind other players. For example, Merck (MRK) has MK-2140 in phase 2 (albeit development in solid tumors has been discontinued). CStone Pharmaceuticals (OTCPK:CSPHF; 2616.HK) has CS5001 which is in phase 1 and could see further development in solid tumors. Notably, CStone is planning to present phase 1 data at the ASCO annual meeting. The most recent update is that CS5001 has produced antitumor activity at dose level 5 or above, with the drug currently at dose level 9. Specifically, the company refers to partial or complete responses in solid tumors and lymphomas (slide 14, slide 17). Figure 2: Overview of CStone's phase 1 study of CS5001, an anti-ROR1 ADC. (2023 Annual Results Presentation, March 28, 2024.)CStone's phase 1 data at ASCO (May 31 to June 4, 2024) will be worth keeping an eye out for IMNM investors, as will updates from MRK. Certainly IMNM's IM-1021 is differentiated in terms of the toxic payload (a camptothecin derivative) and having a high drug-antibody ratio (DAR) of 8. Figure 3: IMNM's overview of the anti-ROR1 ADC space. (IMNM Corporate Presentation, February 2024.)It is possible that there is room for multiple anti-ROR1 ADC's, and all IMNM has to do is identify the indications where IM-1021 is competitive. IMNM expects to file an Investigational New Drug (IND) application in Q1'25. AL102 and AL101 acquisition On February 6, 2024, IMNM announced it would acquire the gamma secretase inhibitor AL102, and the related drug AL101, from Ayala Pharmaceuticals (OTCQX:ADXS), for $20M in cash and $30M in immunome common stock upfront, and an additional $37.5M in milestones. On March 26, IMNM announced it had completed the AL102/AL101 acquisition. Gamma secretase inhibitors have use in desmoid tumors and in November 2023, Springworks Therapeutics' (SWTX) gamma-secretase inhibitor nirogacestat (Ogsiveo) was approved for the treatment of desmoid tumors. IMNM notes that data from a phase 2 study of AL102 have the drug looking pretty good compared to the data seen in a larger trial of nirogacestat. Of course, the apparent superiority of AL102 is based on a smaller data set, coming from just 12 patients. Figure 4: Comparison of AL102 data at the dose selected for phase 3, to nirogacestat data in patients with desmoid tumors. Note these data are not from a within trial comparison. (IMNM Corporate Presentation, February 2024.)The phase 2 study however, didn't enroll just 12 patients, instead it enrolled 42 patients treating them with regimes of AL102; 1.2 mg daily, 2 mg twice a week (2 days on 5 days off) or 4 mg twice a week. The 1.2 mg daily dose did produce the best response rate (50%, 6/12 patients), but the 2 mg twice a week dose produced a similar response rate (5/11, 45.5%). The thing is, the 4 mg twice a week dose only produced a response rate of 3/13 (23.1%). One might expect that regime would at least outperform the 2 mg twice a week regime. Perhaps it goes to show the variability one can see with a low number of patients in each group. Nonetheless I think the 1.2 mg daily dose makes sense for phase 3 work, and indeed that is what is being used in the phase 3 study of AL102. Whether or not the apparent superiority to nirogacestat is replicated in subsequent work is another question but it seems worth a shot, in my opinion. The phase 3 Ringside trial of AL102 completed enrollment in February and IMNM is planning on reporting top line data in Q1'25. The study randomizes 156 patients to placebo or AL102 1.2 mg daily, in a 1:1 ratio. There won't be a within trial comparison to SWTX's nirogacestat then, but a 156 patient data set should provide a more valuable cross trial comparison between AL102 and nirogacestat than we have currently. Atreca On December 26, 2023, IMNM announced it would acquire a collection of antibody-related assets and materials from Atreca (OTC:BCEL), for an upfront payment of $5.5M. BCEL would also be eligible to receive up to a further $7M in clinical development milestones. I've written about BCEL previously and the company had some impressive technology to help it discover new targets found on cancer cells. Unfortunately the company's development of ATRC-101 was suspended, although there were some hints of activity. ATRC-101 is a monoclonal antibody against a novel ribonucleoprotein complex discovered by BCEL's discovery platform. I'd like to see IMNM develop ADC's against targets discovered using BCEL's platform, although IMNM has its own discovery platform, it may be able to leverage the combination to select particularly promising drug targets for ADC development. With regards to IMNM's acquisition of those BCEL assets, the acquisition is subject to a BCEL stockholder vote.  The Company filed a definitive proxy statement on Schedule 14A with the SEC on February 23, 2024 with respect to a special meeting of the Company’s stockholders, which was convened on March 28, 2024 but was adjourned and will reconvene on April 8, 2024, at which the Company’s stockholders will be asked to, among other items, consider and approve the Asset Sale and the Plan of Dissolution. Comments from BCEL S-8 POS filing, April 1, 2024.  It would seem that IMNM investors will be waiting until at least next week to hear if the acquisition of BCEL's assets is successful. Financial Overview Immunome finished 2023 with $138.1M in cash, cash equivalents and marketable securities. In February, the company raised gross proceeds of $230M with an underwritten offering (11.5M shares, $20 per share). The company reported in-process research & development expenses of $80.8M (from the acquisition of Morphimmune's assets) in 2023, R&D expenses of $23.1M for 2023, and G&A expenses of $19.7M for 2023. Net loss for 2023 was $106.8M and net cash used in operating activities was $7.6M. I don't think this cash burn number will be of any use heading forward, since net loss related largely to the non cash IPR&D expenses of $80.8M. As such 2023 was more so a year of building the company, largely through non-cash expense, rather than spending cash on trials of drugs in its pipeline. IMNM expects its current cash to fund activities into 2026, or at least seven quarters from now. The problem currently isn't the cash, instead it would be the fact that the company trades nearly $1B over cash, but its current revenues come from only the AbbVie (ABBV) collaboration ($14M in 2023). Even AL102 isn't that close to approval and generating revenues, with results not expected until Q1'25. A regulatory submission and approval could take another 12 months from that. As of March 26, 2024 there were 59,694,243 shares of IMNM's common stock outstanding, giving IMNM a market cap of $1.47B. As of December 31, 2023, there were 8M stock options outstanding, with a weighted average exercise price of $6.15, and 0.5M common stock warrants, with an exercise price of $10 per share. Notably, some of these options or warrants may have been exercised since year-end 2023 given the run up in the stock. In any case, with pro forma cash in the range of ~$368.1 (not accounting for fees associated with the offering, nor deducting cash spent on the ZNTL and ADXS assets) and a nearly $1.5B market cap, IMNM trades with an enterprise value over $1B. There is obviously a bit of expectation then that the pipeline will perform. Conclusions Immunome is building a rich pipeline and acquiring additional technology to aid its drug development efforts. The management team inspires confidence and I can see the company continuing to trade at a hefty premium to cash. Figure 5: Pipeline slide for IMNM, note the AL102 acquisition has now closed, the trial is now fully enrolled and data should be reported in Q1'25. (IMNM company website.)Right now, IMNM's news flow involves more spending than generating clinical results, as the actual clinical catalysts aren't near-term. A lot of the action is instead in 2025. The name is up 300%+ since I first wrote about it in 2023, and certainly took off in late 2023, but there have been plenty of other runners in the ADC space. It is that swoon in the ADC space that I worry about, where IMNM isn't the only name that has traded up. A pullback in the ADC space overall is a possibility and there is no real reason to think that IMNM wouldn't be impacted if that occurs. Data by YChartsI rate IMNM a more conservative buy now, rather than a strong buy, as the name in the short-term could be exposed to the volatility of the ADC space. In the medium-term, there could be a potential run-up into phase 3 data from AL102. That run up could start in Q4'24 with data due in Q1'25, although that is just my prediction. Over the long term, I do see room for IMNM to continue to grow into a powerhouse in the oncology space, so I do still rate the name a buy, not a hold or sell. The risks of a long in IMNM are several fold, a few of which I'll mention here. Firstly, if CStone reports strong data from its anti-ROR1 ADC, then the bar IMNM has to jump over could be perceived as higher, and IMNM could trade down. It's also possible that IMNM could trade up as the data could be viewed as validating ROR1 as a good target in solid tumors. Secondly, if IMNM's acquisition of BCEL's assets doesn't close, then it is possible the stock could fall, as IMNM might be perceived as having missed out on an asset.  Lastly, if IMNM sees delays in the entry of its pipeline members to the clinic, then the stock could fall, as this would move other clinical catalysts further into the future.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2424797078"}