Immutep – Leading the development of immunotherapy for cancer and autoimmune diseases

James McDonald

Pengana Capital Group

Fund manager James McDonald at the Pengana High Conviction Equities Fund provides insight into some of the current opportunities arising for the Fund.

In particular, James explains why stock example Immutep is very well placed to benefit from the current environment and how it fits in the portfolio structure. With a targeted portfolio made up of less than 20 stock holdings, Immutep is one of the stocks held by investors in the Pengana High Conviction Fund and is one of our top performers which we are very excited about. 

The Fund first invested in this company in November last year when the share price was $0.25. It’s now about $0.53, which is pleasing. The company had a very small market value compared to the revenue opportunity.

Their main drug Eftilagimod, is unlicensed, which makes the company an attractive acquisition target. It has encouraging clinical data in three indications. Breast cancer, lung cancer, and head and neck cancer.

It’s partnered with two of the world’s largest pharmaceutical companies, Merck USA and Merck Kgab, Germany, to conduct joint clinical studies, both of whom could be potential acquirers of the company. Recently Bristol Myers Squibb recorded positive phase three data with a similar class of drug which has created a great deal of interest in this sector.

About two months ago, the FDA granted fast track approval for testing in head and neck cancer, which will accelerate the speed at which the drug could get approved. It’s about a $2 billion market opportunity, so very substantial in its own right even without considering the other indications. We’ll continue to get more data on this drug over the next 12 months, which could see substantial value unlocked.

Register for James McDonald’s next webinar update HERE, where he will touch on the fund's recent performance, current positioning, and outlook for his specific segment of the market.

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Pengana Capital Limited (ABN 30 103 800 568, AFSL 226566) is the issuer of units in the Pengana High Conviction Equities Fund (ARSN 602 546 332) (the "Fund"). A product disclosure statement for the Fund is available and can be obtained from our distribution team. A person should consider the product disclosure statement carefully and consult with their financial adviser before deciding whether to acquire, or to continue to hold, or making any other decision in respect of, the units in the Fund. This report was prepared by Pengana and does not contain any investment recommendation or investment advice. This report has been prepared without taking account of any person’s objectives, financial situation or needs. Therefore, before acting on any information contained within this report a person should consider the appropriateness of the information, having regard to their objectives, financial situation and needs. Neither Pengana nor its related entities, directors or officers guarantees the performance of, or the repayment of capital or income invested in, the Fund.

1 stock mentioned

James McDonald
Portfolio Manager, Pengana High Conviction Equities Fund
Pengana Capital Group

James is the Portfolio Manager of the High Conviction Equities Fund and an Analyst within the Pengana international equities team.

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