Report
Geir Hiller Holom
EUR 92.17 For Business Accounts Only

Targovax (Buy, TP: NOK4.00) - circRNA – the prioritised way

Yesterday, Targovax announced its strategic decision to prioritise its resources on its circRNA platform. We believe this is a right strategic move, since it should leave the company less dependent on the convertible loan financing and since we believe these efforts have the potential to create substantial shareholder value (we now estimate that a deal in circRNA could materialise 6–12 months following proof-of-concept data, expected in H1 2023). With financing secured at what we consider to be fair terms (also considering similar recent deals), we believe the current valuation is too low and see considerable upside potential in the case. We reiterate our BUY and NOK4 target price.
Underlying
Targovax AS

Targovax ASA is a Norway-based company active within the healthcare sector. The Company is developing two complementary and targeted approaches in immuno-oncology: a peptide-based immunotherapy platform for patients with RAS-mutated cancers and a virus-based immunotherapy platform based on engineered oncolytic viruses armed with potent immune-stimulating transgenes for patients with solid tumors. The Company's candidate, TG01, is a peptide vaccine that targets mutations in the RAS genes that are associated with cancer, and it is in a phase II clinical trial in pancreatic cancer. The Company's other RAS targeting immunotherapy, TG02 is developed for colorectal cancer treatment. The Company's adenoviral candidate, ONCOS-102 is developed for the treatment of solid tumors, such as melanoma as well as ovarian and prostate cancer.

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Geir Hiller Holom

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